INTERNATIONAL INVESTORS SNAP UP CHINA’S BONDS
Chinese yuan-denominated bonds are being snapped up by global investors. Overseas investors held a total of 3.06 trillion yuan($473 billion) of Chinese bonds in January, up 62.09 percent from the same period last year and a gain of 5.96 percent from the end of December, according to the latest data from China Central Depository and Clearing Co. January also marked the 26th consecutive month that foreign investors racked up their holdings of Chinese yuan-denominated bonds.
Investors' rising interest in purchasing Chinese bonds reflects a more objective and pragmatic approach toward the Chinese economy, which overcomes the political and ideological bias and may explain why China remains a premium engine of the world's economy.
From the perspective of financial professionals, the main reason for foreign investors to buy Chinese bonds is rooted in their bullish view on the Chinese economy.
A slew of major economic indicators are sufficient to tell the resilience of China's economic fundamentals despite the strong headwinds caused by the coronavirus pandemic last year. China's GDP in 2020 expanded 2.3 percent, making it the first major economy to recover globally.
Source: Global Times