Last year, foreign investors increased their holdings of domestic bonds by US$186.1 billion

  Beijing, January 22 (Reporter Qiu Haifeng) A reporter learned from the State Administration of Foreign Exchange on the 22nd that in 2020, the net increase in foreign capital holdings of domestic bonds will reach US$186.1 billion, and the year-end balance will reach US$512.2 billion.

  Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, introduced at the press conference held by the State Council Information Office that in recent years, with the continuous advancement of the internationalization of the RMB, the nature of the RMB as an international reserve currency has improved, and overseas central banks have allocated RMB bonds The continued increase in demand for China's domestic bonds is the main force for increasing domestic bond holdings.

  According to data from the State Administration of Foreign Exchange, in 2020, foreign central bank investors will hold a net domestic bond holdings of US$47.1 billion, with an average of US$41.1 billion in the past five years.

In terms of stock, foreign central banks and other prudent investors accounted for more than half. By the end of last year, foreign central bank investors held US$263.7 billion in domestic bonds, accounting for 51%.

  Wang Chunying pointed out that foreign investment shows the characteristics of seeking stable returns.

On the whole, foreign investors pursue stable fixed income and mainly purchase low-risk bonds.

Last year, foreign capital increased its holdings of my country’s national bonds by US$93.6 billion, with a year-end balance of US$291 billion; net increased holdings of domestic bank bonds by US$78.3 billion, with a year-end balance of US$184.6 billion, and the combined stocks of the two accounted for 93% of the total foreign holdings of my country’s bonds. .

"At the same time, foreign capital transactions in the domestic bond market are relatively stable. From January to November 2020, the monthly transaction amount under Bond Connect will generally be around 400 billion yuan, without particularly large fluctuations. In addition, foreign investment in the Chinese bond market The proportion of balance and transaction volume are both about 3%."

  "China's medium and long-term economic development prospects are good, which is the main reason why foreign investors favor the domestic bond market." Wang Chunying said that in the context of the epidemic, China's economic fundamentals were the first to be restored, monetary policy remained stable, and my country's bond yields were global The performance of major countries is relatively outstanding, and RMB assets have shown a certain degree of safe-haven asset attributes around the world. This is the most important factor in attracting foreign investment into the domestic bond market.

  Wang Chunying said that China’s financial market has opened up to the outside world into the fast lane. Bonds are included in major international indexes such as Bloomberg and Barclays. RMB assets in the form of bonds have become an important target for foreign investors’ allocation. The bond market is still a relatively stable channel for foreign investment. In general, the current period is a period of increased allocation of foreign capital to build warehouses, so there will be more foreign capital inflows, and the future will enter a period of stable development. "From a risk and development perspective, we will continue to strengthen monitoring, continue to carry out structural analysis, and make early judgments and policy preparations for cross-border capital flows."