China: Foreign interest in bonds continued to pick up in July - ANZ
|Foreign interest in Chinese bonds continued to pick up in July, in line with the increase in buying seen in June as this was likely on solid demand in the recently launched stock connect on 3 July, according to analysts at ANZ.
Key Quotes
“Roughly the entire USD5.6bn of inflows was in CGBs, while PFBs saw marginal outflows of USD0.1bn. With this, foreign ownership of CGBs rose to an all-time high of 4.26%. Equity inflows for July have not been reported yet, but ETF flows suggest that the strong inflows seen in Q2 likely extended into the start of Q3. No doubt the inflows were aided by China’s A shares’ inclusion in the MSCI announced in June. The inflows helped the yuan gain 0.8% against the USD in the month.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.