Taiwan's financial firms keep pulling money out of China, a sign they see rising risk there — cautious news for the industry, bad news for China's ability to attract outside money.

• Taiwanese banks' China exposure fell to 13.8% of their net worth by the end of June, the lowest ever and the first time it has dropped below 14%.
• The pullback is deliberate: China's growth is slowing, and debt and property troubles are seen as getting worse.
• Total China exposure across banks, insurers, and brokers fell about 2.5% from a year earlier.
• Insurers have cut so far that property and casualty firms now hold no Chinese securities at all.
• The scale of the retreat is striking — banks' exposure peaked above 70% of net worth back in 2014.

Outlook: Regulators and bank managers expect the numbers to keep falling as the tightening stance continues.