Many factors drive "investing in China" into the current global investment trend
Our reporter Zhu Baochen
"Investing in China" is becoming the current global investment trend. According to the latest data released by the People's Bank of China, as of the end of June, overseas institutions and individuals held 246.76 billion yuan (RMB) in domestic stocks and 2572.423 billion yuan in domestic bonds, both representing a significant increase from the previous month. As of the end of June, overseas institutions and individuals increased their holdings of domestic stocks and bond assets for the third consecutive month.
In an interview with a reporter from the Securities Daily, some experts said that the reason why China is able to attract global institutional and individual investors is due to multiple factors, such as economic recovery and development, and increased reform and opening up. In the future, foreign investors will continue to increase their holdings of RMB assets and it is worth looking forward to.
One of the answers given by Pang Ming, chief economist and chief strategist at Huaxing Securities, is based on China's economic growth prospects. He explained to the "Securities Daily" reporter that surrounded by many uncertainties such as overseas epidemic prevention and control, economic recovery, and geopolitical risks, China's economy is thriving, the resilience and vitality of China's economy, the security of RMB assets and the stability of financial markets Sexuality is undoubtedly a positive, positive and significant benefit to further attracting foreign investment.
Wu Chaoming, deputy dean of the Caixin International Economic Research Institute, told a reporter from the Securities Daily that domestic epidemic prevention and control and economic restoration are leading the world, with strong expectations for RMB appreciation, and overseas investors are keen to increase their holdings of RMB assets. At the same time, China is currently one of the few economies that maintain a normal monetary policy, which is conducive to attracting overseas investors to increase their holdings of domestic bonds and other assets.
Another important reason is that China's financial market has accelerated reform and opening up. Pang Ming said that with the progress of reform and opening up, the basic system of China’s capital market has been further improved, and the rules of the international financial market have been further improved. The investment value of various types of RMB assets is higher, and the investment channels and processes are more convenient. Foreign institutional investors The quota limit was officially lifted, and the recognition of the opening of China's capital market by foreign investors continued to increase.
Wu Chaoming said that in recent years, the continuous increase in the reform and opening up of the capital market in China will help enhance the investment convenience and willingness of overseas investors. During the year, the A-share market performed well in the world's major economies, attracting the participation of overseas investors. "Increase in the reform and opening up of the capital market is a medium- and long-term strategic arrangement. In the future, foreign investors will continue to increase their holdings of RMB assets and it is worth looking forward to."
Tang Jianwei, deputy general manager and chief researcher of the Bank of Communications Financial Research Center, also expressed similar views. He told the "Securities Daily" reporter that from a global perspective, the current valuation of China's stock market is not high, and bond yields are relatively high. China is currently one of the few large economies that can provide positive-yielding assets. Recently, foreign capital has continued to flow into China through the Shanghai-Hong Kong Stock Connect and Bond Connect. In the future, as China’s financial industry expands and opens up, the continuous flow of foreign capital into China will further accelerate.
The optimization of China's business environment is also an important factor in attracting foreign investment in China. Pang Ming said that under the legal and institutional guarantees of the "Foreign Investment Law" implemented this year, the foreign investment management system and its delineated foreign investment management system mainly include the negative list management system, the foreign investment information reporting system and the foreign investment security review system. The scope of foreign investment is clearer, and the cancellation of the "case-by-case approval" system makes investment in China more convenient and faster, and the legitimate rights and interests of foreign investors and foreign-invested enterprises in China are more effectively protected.
“It can be said that foreign capital and foreign companies have used real money to cast the best vote of confidence in China’s economic growth and social development. If foreign capital and foreign companies are guided, guided and assisted by relevant financial support policies and financial reform measures, they actively invest, Accelerating deployment and stable operations can better adhere to serving the real economy, adhere to cooperation and mutual benefit, adhere to market-oriented orientation, and adhere to prevent systemic financial risks." Pang Ming said.
In the future, to attract more global institutional investors, we still need to continue to exert efforts in many aspects. The answer given by Qian Wei, a macro researcher at China Securities Securities, in an interview with a reporter from the Securities Daily is: further internationalization and marketization of the RMB to reduce the risk of exchange rate fluctuations; strengthen market supervision and reduce moral hazard; deepen market opening and Reforms will increase the long-term confidence of institutional investors and stabilize long-term expectations.
Pang Ming suggested to continue to unswervingly advance the reform of the capital market's basic system, improve the construction of multi-level capital markets, and improve the quality of listed companies; accelerate the high-level opening of the capital market, and increase free trading, risk hedging and price discovery between different markets ; Steadily promote the internationalization of the renminbi, and gradually expand the scope of investment property categories for foreign investors. (Securities Daily)