Economy· Macro· Govt· Policy· Data

China’s bond and equity markets lure USD 49.3 bln foreign monies in H1

minutes 2019/07/18 09:46:03
foreign holdings, foreign exchang, QFII, Sci-Tech Innovation Board, financial market

Jul 18, 2019 (China Knowledge) - China's State Administration of Foreign Exchange (SAFE) reports significant increment of foreign exchange receipts and payments in the first half of 2019, and signals the country's further steps to open up its Chinese financial markets.

SAFE Press Spokesperson and Chief Economist Wang Chunying said at the press briefing that China would step up to ensure that both foreign and domestic investors can get easier access to each other's financial market. The country is considering to further relax the limit on the quota of Qualified Foreign Institutional Investor (QFII), which currently stands at USD 300 billion, as a way to attract more foreign investment.    

New measures will be put in place to prop up the launch of China's Sci-Tech Innovation Board, and accelerate the cross-border investment under the Shanghai- London Stock Connect.

According to statistics released at the press conference, H1 2019 saw a net inflow of foreign capital in China, and the country's actual use of foreign capital increased by 7% YoY. Meanwhile, foreign investment holdings of China's bonds and stocks hit USD 49.3 bln, among which the increase in bond holdings was USD 41.6 bln with the remaining in the stock holdings at USD 7.8 bln.

Many developed and developing countries have started to ease their monetary policies recently and U.S Federal Reserve will likely to lower its interest rate. The Chinese foreign exchange market may benefit from such global loosening monetary policies.

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