2022年1月29日

Report: China’s 13th Five-Year Plan period saw net foreign purchases of $615 billion in domestic stocks and bonds

BEIJING, March 26 (Xinhua) — China’s State Administration of Foreign Exchange (SAFE) on Tuesday released a report on the country’s balance of payments for 2020, which showed that the net inflow of foreign capital and the market value of domestic securities held by foreign investors increased significantly during the 13th Five-Year Plan period. Between 2016 and 2020, foreign investors bought a net $615bn of domestic stocks and bonds.

To be specific, net purchases of A-shares amounted to US $150.7 billion, mainly through the Shanghai-Shenzhen Stock Connect. Net purchases of domestic bonds amounted to US $464.3 billion, mainly through direct investment channels such as the “Bond Connect” and the inter-bank bond market. By the end of 2020, the market value of foreign holdings of domestic bonds and stocks was US $1,054.2 billion, 4.7 times the scale of foreign holdings at the end of 2015.

The report also pointed out that domestic investors layout overseas markets, overseas investment needs to further meet. While “bringing in”, it actively supports domestic investors to “go global”. During the “13th Five Year Plan” period, SAFE issued a total of US $26.8 billion QDII quota, further expanded the investment targets of “Hong Kong Stock Connect”, and the foreign securities investment of domestic investors grew steadily.

Domestic investors bought a net $218.2 billion of overseas securities between 2016 and 2020, data showed. Among them, net purchases of Hong Kong stocks through the “Hong Kong Stock Connect” amounted to 203.9 billion US dollars; Net purchases of foreign securities through QDII channels amounted to $14.3 billion. By the end of 2020, the market value of overseas securities held by domestic investors was US $403.9 billion, 5.4 times that of 2015.

According to the report, the current two-way opening pattern of securities investment is conducive to accelerating the construction of a new development pattern in the 14th Five-Year Plan period, which is dominated by the domestic cycle and mutually promoted by the domestic and international cycles. It will also provide policy guarantee and an open environment for the two-way flow of cross-border capital. (after)

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