Foreign investors increased their holdings of Chinese bonds and RMB assets in 18 consecutive months, becoming a global safe haven

category:Finance
 Foreign investors increased their holdings of Chinese bonds and RMB assets in 18 consecutive months, becoming a global safe haven


Recently, Chinas integration of bond market investment channels, cancellation of QFII and rqfii quota management, expansion of qualified domestic limited partner system (qdlp) and qualified overseas limited partner system (qflp) pilots, and deregulation of share ratio of foreign financial institutions by regulators are all important measures to expand the opening up of the onshore market.

Our judgment on Chinas acceleration of capital market opening and its absorption of nearly US $100 billion of bonds and stock market inflows per year remains unchanged. Xing Ziqiang, chief economist of Morgan Stanley, thinks that overseas investors are very interested in Chinas bond market now. With the global embrace of zero interest rate, negative interest rate and quantitative easing, Chinas sovereign assets - national debt still reflects a relatively strong return. Xing Ziqiang suggested that in this process, the reform of financial market and the growth of local currency market should be brought into the fast lane, such as the establishment of yield curve, the increase of supply for long-term bond issuance, and the need to add some risk hedging tools, including interest rate swaps. All of these are conducive to expanding the RMB asset market and ultimately enhancing the attractiveness of international funds. From this point of view, Chinas bond market has great potential to attract foreign investment. Source: surging news editor: Zhang Mei_ NF2100

Our judgment on Chinas acceleration of capital market opening and its absorption of nearly US $100 billion of bonds and stock market inflows per year remains unchanged. Xing Ziqiang, chief economist of Morgan Stanley, thinks that overseas investors are very interested in Chinas bond market now. With the global embrace of zero interest rate, negative interest rate and quantitative easing, Chinas sovereign assets - national debt still reflects a relatively strong return.

Xing Ziqiang suggested that in this process, the reform of financial market and the growth of local currency market should be brought into the fast lane, such as the establishment of yield curve, the increase of supply for long-term bond issuance, and the need to add some risk hedging tools, including interest rate swaps. All of these are conducive to expanding the RMB asset market and ultimately enhancing the attractiveness of international funds. From this point of view, Chinas bond market has great potential to attract foreign investment.