China just hit a major milestone—foreign asset holdings now exceed Japan's, marking a significant shift in global capital positioning. This comes alongside record levels of Chinese FX repatriation flowing back into domestic markets. The move reflects ongoing adjustments in cross-border capital allocation strategies, which often influence broader market sentiment across crypto and traditional finance. As major economies recalibrate their reserve compositions and capital flows, traders watching macro trends should pay attention to how these shifts might cascade through risk assets in the months ahead.