Foreign investors witnessed a net increase of $41.6 billion in their holdings of the Chinese mainland's domestic bonds during the first quarter of 2024, according to official data released on Thursday.
This surge is significantly higher than the net increase of $23 billion recorded by foreign investors in 2023.
\"Recently, overseas institutions' investment in domestic bonds has increased significantly,\" said Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, at a press conference.
By the end of March, more than 1,100 overseas institutions from over 70 countries and regions had entered the domestic bond market. Their bond holdings surpassed $570 billion, representing approximately 2.6 percent of the total domestic bonds in custody, an increase of 0.2 percentage points from the end of last year.
Wang added that overseas investment in the domestic bond market maintains a reasonable structure and stable returns. She highlighted that overseas central banks and financial institutions have been increasing their investments in medium- to long-term bonds, such as treasury bonds.
Looking ahead, Wang anticipates that overseas institutions' investment in domestic bonds will continue its steady growth momentum, supported by a sound macroeconomic environment, a stable renminbi exchange rate, and an increase in the use of the renminbi in global cross-border transactions.
Reference(s):
Foreign holdings of Chinese bonds see net increase of over $40 bln
cgtn.com
