Foreign investors funneled over $3 billion into Chinese debt in July, the first net monthly inflows to the country this year, according to data from the Institute of International Finance (IIF). That’s less than a third of the $10.6 billion poured into Chinese bonds in December as China geared up to lift its strict COVID-19 curbs.
China also saw a $7.7 billion inflow from non-locals to Chinese stocks in July, surging from the $1.9 billion in June and the second-largest monthly inflows in 2023, showed the data.
“Diminished currency volatility enhances the allure of carrying offshore and is encouraging foreign creditors to benefit across EM local yield curves, making debt assets more attractive to foreign investors,” the IIF said.