📈 Global investors are showing major love for Chinese bonds this year! In the first quarter of 2024 alone, foreign investors boosted their holdings of China's domestic bonds by a whopping $41.6 billion, according to official data released on Thursday.
🔥 That's almost double the $23 billion net increase we saw in all of 2023! Talk about leveling up! 🚀
\\"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. Sounds like everybody wants a piece of the action! 💰
By the end of March, more than 1,100 overseas institutions from over 70 countries and regions had entered China's domestic bond market. Their bond holdings have soared past $570 billion, making up about 2.6% of all domestic bonds in custody—up 0.2 percentage points from the end of last year. 📊
Wang highlighted that overseas investment in China's bond market offers a solid structure and stable returns. Central banks and financial institutions around the world are upping their game by investing more in medium- to long-term bonds like treasury bonds. 🏦
Looking ahead, Wang is optimistic. She expects overseas institutions' investment in domestic bonds to keep up the steady growth momentum, thanks to a strong macroeconomic environment, a stable renminbi exchange rate, and the growing use of renminbi in global cross-border transactions. 🌐
So, what's the vibe? It seems the world is tuning into China's financial groove, and the beat is getting stronger! 🎧
Reference(s):
Foreign holdings of Chinese bonds see net increase of over $40 bln
cgtn.com
