Bridgewater Research Report: global investors are turning to Chinese assets
Oct 30, 2018 (China Knowledge) - Chinese media has quoted Bridgewater research report as saying that most global investors have insufficient holdings of Chinese assets compared with China's economic size, status and financial assets. This pattern has started to change over the past year, especially when foreign investors have accelerated their purchases of Chinese bonds and stocks. These trends reflect the steps China is taking to make its market more attractive to the outside world and the gradual incorporation of major global indices into China's assets.
In recent months, policymakers have carried out a series of important market reforms to declare China's bonds as part of the Bloomberg-Barclays Global Bond Index (BGBI). In terms of Chinese stocks, FTSE announced, in late September, that it would launch phase A shares into its global stock index in June 2019. Recently, accelerated inflows of foreign capital into these two asset classes show current progress, but if asset allocation matches the economic size of the Chinese market, then the current holdings of foreign investors in China are only a small fraction of their level.
China's market has become one of the largest in the world, but considering the size of the issued financial assets and their economic impact, China's market still has great room for development.
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