China to lure more foreign investment in bonds, stocks
* SAFE sees big room for foreign investment in China bonds,
* To improve opening of interbank bond market
* Expects China to post current account surplus in Q1
(Adds details, quotes)
BEIJING, April 18 (Reuters) - China aims to attract more
foreign investment in its bonds and stocks as the country
further opens up its capital markets, the foreign exchange
regulator said on Thursday.
There is significant room for foreign investors to buy
Chinese bonds and stocks given their holdings of such
instruments accounted for just 2-3 percent of the total, Wang
Chunying, spokeswoman for the State Administration of Foreign
Exchange (SAFE), said in a news conference.
"China will become an important destination of diversified
asset allocation for global investors in the future, under the
policy of further opening up and facilitation," Wang said.
Overseas institutions bought a net $9.5 billion in Chinese
bonds and a net $19.4 billion in listed Chinese stocks in the
first quarter of 2019, she said.
Wang also said China will improve channels for opening up
its interbank bond market and develop the panda bond market.
Commenting on the U.S. Federal Reserve's policy stance, she
said it will be favourable for the nation's capital flows, and
expects the cross-border capital flows to remain steady despite
The Fed recently called a halt to further rate hikes over
this year in the face of rising global economic risks, in turn
putting a dent on the dollar.
Wang said China will ensure safety of its forex reserves,
reaffirming a pledge to improve the yuan regime as well as the
flexibility of trading in the currency.
Chinese commercial banks sold a net $9.1 billion of foreign
exchange in the first quarter, the regulator said, adding the
nation's current account is likely to maintain a surplus in the
first quarter of the year.
China's cross-border capital flows are expected to remain
steady this year, helped by the government's growth-supportive
policies, Wang said.
China's economy grew at a steady 6.4 percent pace in the
first quarter, defying expectations for a further slowdown, as
industrial production jumped sharply and consumer demand showed
signs of improvement.
China reported a current account surplus of $49.1 billion in
2018, SAFE data showed last month.
The OECD said in a report on Tuesday that China's current
account may swing to a deficit of 0.1 percent of GDP this year
from a small surplus in 2018, amid its rebalancing towards
(Reporting by Kevin Yao and Lusha Zhang
Editing by Shri Navaratnam)
First Published: 2019-04-18 04:36:19
Updated 2019-04-18 07:13:26
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