Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Investment

    Foreign investment in Chinese bonds rising

    Robust economic fundamentals and outlook for higher returns spur interest

    By ZHOU LANXU | China Daily | Updated: 2021-04-24 07:23
    Share
    Share - WeChat

    Foreign investors will continue to scale up their exposure to domestic bonds, thanks to China's robust economic fundamentals and prospects for healthy return, officials and experts said on Friday.

    Despite the rising US dollar and the smaller yield advantage of Chinese government bonds, the net increase in foreign holdings of domestic bonds stood at $63.3 billion in the first quarter of the year, up 11 percent on a quarterly basis, said Wang Chunying, a spokeswoman for the State Administration of Foreign Exchange, the country's forex regulator.

    In March, foreign investors added $3.3 billion worth of holdings in domestic bonds, lower than the historically high levels seen in February and January, but still higher than the same period of last year and 2019, Wang said during a news conference on Friday.

    "The general trend of foreign capital increasing holdings (in domestic bonds) will continue based on current conditions," Wang said."China's overall economic and social development has always been stable, and major macroeconomic indicators are showing positive changes. This has provided the solid basis for foreign capital inflows."

    Wang said that more than $130 billion, as projected by some market institutions, is expected to flow into domestic bonds as FTSE Russell gradually includes Chinese government bonds. Global index provider FTSE Russell said last month that it will add Chinese government bonds into its World Government Bond Index from October.

    Wang's remarks follow apprehension in some market circles after bad-debt manager China Huarong Asset Management Co Ltd said it would delay its earnings report, while the China-US yield spread narrowed, potentially weakening the attractiveness of Chinese bonds to some extent.

    The Huarong delay should not impede the trend of foreign investors scaling up holdings in Chinese bonds as "there are a lot of investment targets to be selected from,"Wang told China Daily on the sidelines of the news conference.

    The China-US yield spread, as represented by the difference between the yield of 10-year Chinese treasury bonds and their US counterpart, has narrowed to about 1.6 percentage points as of Friday from about 2.5 percentage points at the beginning of August, according to market tracker Investing.com.

    Despite the smaller yield spread, Chinese bonds still provide global investors with appealing returns in a world flooded with negative-interest assets, as well as diversification benefits and relative stability in asset prices, Wang said.

    Renminbi-denominated assets have assumed some features of safe-haven assets, Wang said, adding that the share of foreign holdings in the domestic bond market remained low at 3 percent by the end of last year, leaving a large room for future growth as opening-up deepens.

    Wang Qian, Asia-Pacific chief economist with the US-based Vanguard Investment Strategy Group, said Chinese bonds still provide "significantly" higher returns than the global level, especially when compared with developed markets."One would expect strategic foreign investors to continue adding Chinese stocks and bonds into their portfolios."

    Wang from the SAFE said that given China's position as an importer of commodities, the rising international commodity prices may increase the country's foreign exchange payments, but the country's balance of payments situation remained healthy as exports grew briskly in the first quarter.

    Current account surplus, which mainly records a country's import and export transactions, has fallen from the fourth quarter of last year based on preliminary calculations and should maintain a "reasonable" scale for the whole year as the recovering global demand supports China's exports, Wang said.

    Official data showed that China's foreign exchange market performed steadily in the first quarter with generally balanced international payments and two-way fluctuation of the renminbi within a rather narrow range.

    Chinese lenders sold $501.6 billion worth of foreign exchange and bought $590.2 billion in the first three months of the year, resulting in net purchases of $88.5 billion. In March, the net purchases came in at $19.7 billion, the administration said.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    国产网红主播无码精品| www.中文字幕| 久久久久久久人妻无码中文字幕爆 | 国产精品无码无卡在线播放| 亚洲日本中文字幕区| 久久亚洲精品无码观看不卡| 永久免费av无码入口国语片| 日本不卡中文字幕| 久久久久无码专区亚洲av| 无码毛片视频一区二区本码| 亚洲欧美在线一区中文字幕 | 成人麻豆日韩在无码视频| 中文字幕在线亚洲精品| 人妻丝袜中文无码av影音先锋专区 | 成在人线av无码免费高潮喷水| 中文字幕亚洲精品无码| 高清无码在线视频| 亚洲AV无码国产精品麻豆天美 | 天堂…中文在线最新版在线| 18禁免费无码无遮挡不卡网站| 超清无码无卡中文字幕| 日日摸夜夜爽无码毛片精选| 最近2019好看的中文字幕| 最近2019中文免费字幕在线观看| 国产精品无码素人福利不卡| 日日摸日日踫夜夜爽无码| 亚洲av永久无码精品古装片| 亚洲中文字幕无码日韩| 中文字幕乱妇无码AV在线| 中文字幕日本精品一区二区三区| 精品久久久久中文字| 欧美日韩国产中文精品字幕自在自线 | 日本中文字幕中出在线| 人妻无码αv中文字幕久久 | 久久久无码精品亚洲日韩蜜臀浪潮| 中文无码制服丝袜人妻av| 日本无码小泬粉嫩精品图| 在线播放无码高潮的视频| 亚洲国产精品无码久久一区二区| 亚洲精品无码专区久久久 | 亚洲精品无码精品mV在线观看|