Global holdings of Chinese stocks and bonds have jumped by about $120bn in 2021 as international investors chase returns in the country’s markets despite recent volatility and regulatory crackdowns by Beijing.
International investors held Rmb7.5tn ($1.1tn) of equity and fixed income securities priced in renminbi as of the end of September, up about Rmb760bn from the end of 2020, according to Financial Times calculations.
The climb highlights how investors are reaching in to mainland Chinese markets directly, rather than through financial instruments listed in global financial hubs such as New York and Hong Kong. It comes at a time when some analysts and investors worry that strong returns in developed markets may be exhausted, leading them to pursue opportunities elsewhere.