Global holdings of Chinese stocks and bonds have surged about 40% to more than $800 billion over the past year as investors bought assets at a record pace, reported the Financial Times.
Offshore investors have bought a net $35.3 billion of Chinese stocks in the year to date via trading platforms that link Hong Kong with exchanges in Shanghai and Shenzhen, according to Financial Times calculations based on Bloomberg data. That was about 49% higher compared with a year earlier.
Foreign buying of Chinese stocks and government bonds has risen at the fastest rate ever compared with corresponding periods in previous years. Enthusiasm for Chinese assets has been fueled by the country’s swift rebound from the Covid-19 pandemic but concerns are surfacing that its economic growth is slowing.
“Contrary to the geopolitical rhetoric, from an asset management point of view you cannot avoid looking at the Chinese market,” said Andy Maynard, a trader at investment bank China Renaissance.