Foreign capital continues to display strong confidence in China’s bond market, evidenced by a sustained increase in net purchases by foreign institutions month after month. This marks the ninth consecutive month of net foreign buying, with cumulative net purchases exceeding 1 trillion yuan in 2023 alone.
October witnessed a particularly significant surge, with net foreign purchases exceeding 200 billion yuan. Since the beginning of the third quarter, the value of bonds held by foreign institutions has experienced rapid growth, increasing by nearly 40 billion yuan in October and projecting a further increase of 250 billion yuan in November.
This sustained interest stems from China’s ongoing economic recovery and the steady progress made in achieving high-quality development. Notably, the third quarter saw the gradual emergence of various policy measures, which have effectively strengthened the endogenous driving forces of the economy and contributed to a more pronounced recovery trend.
These positive developments have further enhanced the investment value and risk-hedging attributes of RMB bonds, thereby amplifying China’s bond market’s attractiveness to foreign investors.
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