Foreign Holdings of Chinese Bonds Rise for 27th Month- PingWest

Foreign Holdings of Chinese Bonds Rise for 27th Month- PingWest

Foreign Holdings of Chinese Bonds Rise for 27th Month

March 6, 2021 3:30 am

Beijing (PingWest)—Overseas investors raised their holdings of Chinese bonds for the 27th month in a row in February, Xinhua News Agency reported.

Overseas investors held a total of 3.15 trillion yuan (about $486.4 billion) of Chinese bonds by the end of February, rising 3.13% from a month earlier, data from China Central Depository & Clearing Co Ltd showed.

Market transactions were also robust, with trading volumes among foreign investors amounting to 671.8 billion yuan last month.

With a strong rebound in the fourth quarter, China's economy expanded 2.3% in 2020, becoming the only major economy to achieve positive growth in the pandemic-ravaged year.

Data from financial service provider Wind showed as of March 2, the spread between Chinese 10-year government bonds and their US counterparts came in at 183 basis points, narrowing from the 249 basis points seen in November last year.

As the pandemic gradually came under control and economic recovery gained steam, the monetary easing policies in major economies may exit, which is likely to bring changes in capital flows, the Chinese central bank said in a recent policy report, warning against related risks.

SHARE