Foreign investors are doubling down on China’s bond market, with a net increase of $41.6 billion in holdings during the first quarter of 2024—nearly twice the total for all of 2023! 📈 Official data reveals over 1,100 overseas institutions from 70+ countries and regions are now active in the market, holding bonds worth $570 billion+.
💡 Wang Chunying, spokesperson for China’s forex regulator, highlighted the trend: “Overseas central banks and financial institutions are prioritizing medium- to long-term bonds like treasury bonds for their stable returns and balanced structure.” This aligns with the rising global use of the renminbi, now powering 28% of cross-border transactions globally.
🌐 Analysts point to China’s stable macroeconomic environment and currency as key drivers. With foreign holdings accounting for 2.6% of China’s total bonds (up 0.2% since 2023), experts predict steady growth ahead. As one trader put it: “It’s like adding a high-yield, low-volatility asset to your portfolio—no wonder investors are flocking.”
