Global holdings of Chinese stocks and bonds have skyrocketed by about 40% over the past year as investors buy assets at a record pace, despite deteriorating relations between Beijing and the international community. And exceeded $ 800 billion.
Global investors entering the Chinese market between Beijing and Washington Corporate audit Uighur crackdown on Beijing in Xinjiang Uighur Autonomous Region held by the United States Labeled genocide..
It is also in line with the Beijing crackdown China’s list on US capital marketsAnnounced just days after the $ 4.4 billion listing in New York, including a data security study at Ride Hailing Group’s Didi Chuxing.
Offshore investors have purchased a net $ 35.3 billion in Chinese stocks year-to-date through a trading platform linking Hong Kong with Shanghai and Shenzhen exchanges, according to Financial Times calculations based on Bloomberg data. This was about 49% higher than it was a year ago.
Foreign investors have also purchased more than $ 75 billion from the Chinese Treasury since the beginning of the year, an increase of 50% over the previous year, according to Crédit Agricole figures.
Foreign purchases of Chinese equities and government bonds have risen the fastest in history compared to the same period last year. China’s enthusiasm for assets has been fueled by a rapid rebound from the Covid-19 pandemic, but that concern has surfaced. Economic growth is slowing..
“Contrary to geopolitical rhetoric, it is inevitable to look at the Chinese market from an asset management perspective,” said Andy Maynard, a trader at investment bank China Renaissance.
In recent years, the inflow to the Chinese market has increased rapidly. Inclusion of RMB assets A global equity and fixed income index tracked by trillions of dollars worth of assets.
In March, FTSE Russell became the latest index provider to confirm the following plans: Including Chinese government debt In the global fixed income index, Nomura’s predicted move would pour more than $ 130 billion into China.
According to FT calculations based on the figures of Crédit Agricole and Hong Kong’s Bond Connect Program (a conduit for offshore investors to trade debt issued on the mainland), this year’s bond inflow will bring about 37 foreign holdings. It was RMB trillion ($ 578 billion).
As of Wednesday, foreign investors had more than RMB 14 trillion ($ 228 billion) in land stock. Market collaboration with Hong Kong, Excludes other foreign investment programs.
As a result, foreign investors have held approximately $ 806 billion in Chinese stocks and bonds through these channels, an increase from approximately $ 570 billion a year ago.
This year is a global shift from high value Tech stocks It also benefits the mainland Chinese market. Analysts said China’s land stocks provided better exposure to non-technical sectors such as industrial groups.
Thomas Gatley, an analyst at Gavekal Dragonomics, said:
Analysts said mainland stocks were also favored by global investors as US-listed Chinese stocks faced the domestic market. Regulatory crackdown..
Stocks of Didi, a Chinese ride-hailing service group listed on New York Fall Last week after Beijing launched a cybersecurity investigation into the company.
Mansoor Mohi-uddin, Chief Economist at the Bank of Singapore, pointed out that Chinese government bonds offer attractive returns compared to US government bonds in the bond market.
“There is a significant difference between Chinese bond yields and US Treasuries,” he said, noting that there is a 1.5 percent point gap between the two.
The influx into the Chinese bond market was also accompanied by a rebound in the yuan High price for the first time in 3 years Against the May dollar.
“Interest rate differentials continue [renminbi]”We boosted the influx of Chinese equities and bonds in the second half of this year,” said Mohiudin.
Offshore purchases of government bonds accelerated this week as the central bank of China decided to lower the reserve requirement ratio of lenders on Friday.
https://californianewstimes.com/global-investors-exposure-to-chinese-assets-surges-to-800bn/438827/
