test


Member ID:
Password: 
Stay logged in for 30 days
Forget Your Password?
close

login CCFGroup App

Economy | Time: Aug 6 2020 4:45PM
Global investment in China grows for three straight months
 
Text size
June marked the third consecutive month of an increase in Chinese stocks and bonds among both overseas institutes and private holders, the Securities Daily reported on Thursday, sourcing data from the People's Bank of China, the central bank.

As of late June, overseas institutes and private holders had held 2.46 trillion yuan ($354.16 billion) worth of Chinese shares, up remarkably from last month, according to the central bank.

Experts said that China's attraction for investment from global institutions and private investors involves multiple reasons, including economic recovery, development momentum and intensified reform. They expected overseas investors will continue to increase renminbi assets.

Pang Ming, chief economist at Huaxing Securities, said that due to uncertainties outside China, such as the pandemic prevention and control, feeble global economic recovery and geopolitical risks, it's little wonder that the solid-growth prospects for and vitality of the Chinese economy, the safety of RMB assets, and the stable finance market are all positive and major reasons behind the rise in foreign investment.

Wu Chaoming, deputy dean of the Chasing Institute under the aegis of Chasing Securities, said China is in a leading position in pandemic prevention and control as well as economic recovery. It contributed to a strong expectation in RMB appreciation that prompted investors to increase their holdings in Chinese bonds and other Chinese assets.

Another reason for the foreign investment growth is the acceleration of the reform and opening-up of the Chinese financial market. Pang Ming said, with the advancement of the country's reform and opening-up, further refinement in the financial market system, and better connections with international financial market rules, overseas investors have increasingly recognized the rising degree of openness in the Chinese capital market.

The optimized business environment is another reason for the growth. Pang said the foreign investment law put into effect this year clarifies the investment scope, and cancels the "one case, one approval" mechanism for the convenience of investing in China. "As it were, foreign investors and enterprises cast their vote of confidence for China's economic growth and social development with real money."

In the future, more efforts are still needed to attract more global investors. Qian Wei, a researcher with China Securities, said RMB should be further globalized and marketized so as to reduce exchange rate fluctuations; market supervision should be enhanced to diminish risk; and the market should continue to see wider reforms in order to strengthen the long-term confidence and prospects of global investors.

Source: chinadaily.com.cn
Related Articles
S&P revises up forecast for China's economy
Comprehensive bonded zones contribute to China's foreign trade
German economy to shrink less than previously expected: ifo
China's central bank injects liquidity into market
Latest on the novel coronavirus outbreak (Sep 17, 2020)
Cross-Strait trade, Taiwan investment on mainland keep growing
Country's ODI stays robust, says report
WTO: US tariffs on China violated trade rules
ADB predicts economic recovery in Pakistan in FY2021
China imports more major commodities amid improving economic
 
Research
Development change of virgin PSF and recycled PSF and their ...
Polyester market review in H1 2020 and market outlook
PET bottle chip market to face challenges after an ...
Spandex market review in H1 2020 and market outlook
PTA and PX market outlook in H2 2020
Analysis on production changes of global major cotton ...
 
 

浙公网安备33010902000742号