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miohtama is actually correct. Foreign investors have snatched back nearly 90% of the money they put into Chinese stocks this year (2023) https://markets.busin

miohtama is actually correct. Foreign investors have snatched back nearly 90% of the money they put into Chinese stocks this year (2023) https://markets.businessinsider.com/news/stocks/china-economy-chinese-stock-market-foreign-investor-cash-flow-money-2023-12 https://markets.businessinsider.com/news/stocks/china-econom... Foreign investment in China turns negative for first time https://asia.nikkei.com/Economy/Foreign-investment-in-China-turns-negative-for-first-time https://asia.nikkei.com/Economy/Foreign-investment-in-China-...

hmm37 3y ago
Equities are different from bonds. Bonds are being snapped up by a lot of foreign investors.
- berserk1010 3y ago
  Chinese equities suffered a US$3.4 billion outflow from non-resident portfolios in the last month of 2023, while Chinese bonds only had a marginal US$189 million inflow for the same month, according to preliminary data from the Institute of International Finance (IIF) released on Thursday. https://www.scmp.com/economy/china-economy/article/3248078/china-hit-us34-billion-equities-outflow-wary-investors-eye-other-emerging-markets https://www.scmp.com/economy/china-economy/article/3248078/c... That said, once foreign bond buyers realize how much foreign creditors get back from the Evergrande debt (0 cents on the dollar), pretty sure foreign bond purchases will drop fast
  - hmm37 3y ago
    There most be different data sets or different measurements, or categories of bonds being used. E.g. https://www.bloomberg.com/news/articles/2024-01-16/china-bond-inflow-extends-on-lucrative-swaps-pboc-easing-hope https://www.bloomberg.com/news/articles/2024-01-16/china-bon... "Global investors raised their holdings of Chinese bonds for a fourth straight month, capitalizing on a lucrative currency swap strategy to continue their gradual return to the world’s second-biggest debt market. They bought 181 billion yuan ($25 billion) of local yuan bonds on a net basis in the country’s main interbank market in December, taking their total holdings to the highest since April 2022, show Bloomberg calculations based on clearing house data." All of this is besides the point that foreigners are buying China's bonds, as @loeg has stated. They are essentially swapping out riskier equities for the safety of bonds which is by and large what is often taught to do when the economy isn't booming, only to switch back into equities when the downward cycle is over.
anon-sre-srm 3y ago
It's curious why any FDI happened, except small amounts of speculative investment. Property rights in China have always been highly precarious. It's a huge economy but the game is arbitrary and rigged.

hmm37 3y ago

Equities are different from bonds. Bonds are being snapped up by a lot of foreign investors.

berserk1010 3y ago
Chinese equities suffered a US$3.4 billion outflow from non-resident portfolios in the last month of 2023, while Chinese bonds only had a marginal US$189 million inflow for the same month, according to preliminary data from the Institute of International Finance (IIF) released on Thursday. https://www.scmp.com/economy/china-economy/article/3248078/china-hit-us34-billion-equities-outflow-wary-investors-eye-other-emerging-markets https://www.scmp.com/economy/china-economy/article/3248078/c... That said, once foreign bond buyers realize how much foreign creditors get back from the Evergrande debt (0 cents on the dollar), pretty sure foreign bond purchases will drop fast
- hmm37 3y ago
  There most be different data sets or different measurements, or categories of bonds being used. E.g. https://www.bloomberg.com/news/articles/2024-01-16/china-bond-inflow-extends-on-lucrative-swaps-pboc-easing-hope https://www.bloomberg.com/news/articles/2024-01-16/china-bon... "Global investors raised their holdings of Chinese bonds for a fourth straight month, capitalizing on a lucrative currency swap strategy to continue their gradual return to the world’s second-biggest debt market. They bought 181 billion yuan ($25 billion) of local yuan bonds on a net basis in the country’s main interbank market in December, taking their total holdings to the highest since April 2022, show Bloomberg calculations based on clearing house data." All of this is besides the point that foreigners are buying China's bonds, as @loeg has stated. They are essentially swapping out riskier equities for the safety of bonds which is by and large what is often taught to do when the economy isn't booming, only to switch back into equities when the downward cycle is over.

anon-sre-srm 3y ago

It's curious why any FDI happened, except small amounts of speculative investment. Property rights in China have always been highly precarious. It's a huge economy but the game is arbitrary and rigged.