Foreign countries have continued to enter China bonds for 7 consecutive months

Foreign countries have continued to enter China bonds for 7 consecutive months

Original title: Foreign countries continue to enter the market for 7 consecutive months to increase positions in Chinese bonds Foreign exchange has continued to enter the market for 7 consecutive months to increase positions in Chinese bondsThe scale of holding Chinese bonds reached a record high, reaching 16,452.

3.8 billion yuan.

Net increase in June was 346.

US $ 1.9 billion, the seventh consecutive month of increased foreign holdings of Chinese bonds.

At the same time, at the end of June, foreign institutions held 3090 positions in the Shanghai Clearing House.

4.3 billion Chinese bonds, a net increase of 400 in the month.

8.2 billion.

This shows that the enthusiasm of foreign countries to enter the Chinese bond market continues unabated, and continues to expand to increase Chinese bonds.

  Vice President Liu Zhe of the Weber New Economics Institute told the Securities Daily reporter that there are two backgrounds for foreign investors to continue to increase their holdings of Chinese bonds. One is China’s economic background.

Since the reform and opening up, China ‘s rapid and stable economic development has become the second largest economy in the world. The development of the bond market is related to the development of the Chinese economy and is mutually reinforcing. The second is the background of financial development and financial openness.

The bond market is an important indicator of the degree of financial development. A large increase in investment in Chinese government bonds is mainly based on a comprehensive judgment of the three aspects of the liquidity of the bonds, the stability of returns, and the convenience of transactions after the financial opening.The decision-making marks 天津夜网 that China’s financial market has entered a new stage of “precise development”.

With the continuous enrichment of the product system of the Chinese bond market, the continuous improvement of related systems, and the continuous optimization of investor structure, it will promote the Chinese economy and help industrial transformation.

  Analysts believe that foreign countries continue to “buy, buy and buy”, another reason is that foreign investors’ access to the Chinese bond market has been continuously expanded, attracting a continuous influx of external resources.

  From April 1 this year, China’s bonds have been divided by the Bloomberg Barclays Global Composite Index, and it is expected to become the FTSE World Treasury Bond Index and the Global Emerging Market Diversified Bond Index affiliated with JP Morgan Chase in the future.

FTSE Russell Asia Pacific director Li Zhanying said that FTSE Russell will routinely evaluate whether to replace Chinese bonds in September, and the results may be officially announced in October.

This shows that the conversion of bonds into bonds gradually exceeds the international mainstream index, and the demand for foreign investors to invest in income bonds will rise.

  Liu Zhe said that with the continuous increase in the proportion of foreign capital allocation, the linkage between China’s bond market and the global market will also increase, which also places higher requirements on the risk control of the bond market.

At the same time, hedging instruments in the Chinese bond market have more room for improvement. With sufficient hedging instruments, they can better meet foreign demand for risk control, thereby increasing the attractiveness of the Chinese bond market.

  Previous analysts also believe that the spread factor is also one of the reasons affecting foreign investment.

Since this year, the spread between Chinese and foreign bonds has expanded significantly, making the cost-effectiveness of Chinese bonds outstanding.

Investors began to look for opportunities in the Chinese market and kept adding Chinese bonds.

  According to the latest data from the Central Government Bonds Registration and Clearing Co., Ltd., the July 10-year Treasury yields were converted.

15%, down 36.

28 basis points, continue to decline.

In the US Treasury market, 10-year Treasury yields increased by one.

956%, the lowest level since November 2016.

In this environment, the attractiveness of Chinese bonds to foreign countries is bound to continue to increase.