Foreign investment flows into Chinese stocks and bonds have continued to grow, despite escalating tensions between China and the US.Foreign ownership of China's Rmb78.37trn (US$10.1trn) equities market stood at 4.29% at the end of March, the last quarter for which data are available, according to data from Natixis. That was up from 4.27% at the end of last year and 1.13% at the end of 2015.Foreign ownership of China's Rmb104.24trn bond market came in at 3.41% at the end of March versus 3.2% at the end of last year and 1.42% at the end of 2015.This is still much lower than most developing markets, where the figures are usually closer to 20%, meaning there is still room for foreign ownership to rise further."It basically comes down to fundamentals as China had one of the best performances globally in-equities last year among the major economies and on the fixed-income side it still enjoys a positive interest rate differential with the US as well as a strengthening' currency," said Alicia Garcia-Herrero, chief Asia-Pacific economist at Natixis.
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