Foreign capital used to buy China’s sovereign bonds outweighed spending by local banks more than three-fold in the first four months of the year, latest figures show, as a strong yuan and high yields kept Chinese debt attractive for offshore funds.
Foreign investors bought a net RMB 174 billion ($27 billion) Chinese government bonds up to the end of April, according to data from China Central Depository & Clearing Co., compared with RMB 47.8 billion bought by local commercial banks. Bloomberg calculations show that government bonds now make up a record 68% of foreign China portfolios.