Foreign institutions have increased their possession of Chinese local bonds by more than 270 billion yuan (36.99 billion dollars) so far this year, according to the new China News Agency (Xinhua), which reflects the attractiveness of the second largest bond market.
Chengua, quoting the Chinese People’s Bank (Central Bank), said that the total biases of foreign institutions in Chinese bonds amounted to 4.5 trillion yuan (616.43 billion dollars) until April 15.
According to the agency, foreigners only represent about 2.4% of the $ 25 trillion Chinese bond market, indicating great potential for growth.
The openness of the bond market
Xinhua added that the Chinese People’s Bank will enhance the openness of the bond market and attract more foreign investors while deepening relations between regions such as the Middle East, Latin America, Europe and Africa, according to Reuters.
China’s efforts to attract foreign investment come as it threatens comprehensive customs duties imposed by US President Donald Trump to destabilize investor investors in US assets.
Also Saturday, the Xinhua Agency reported that foreign direct investment in China witnessed a slight recovery last March, despite the decline in the total flows during the first quarter compared to last year.
The agency quoted the Chinese Ministry of Commerce as saying that the volume of foreign direct investment increased by 13.2% on an annual basis last month.
The total foreign direct investment flows during the first three months of this year amounted to 269.2 billion yuan (about 37.35 billion US dollars), recording a decrease of 10.8% on an annual basis.
