China still riding boost from reopening as foreign investors answer the call, add US$7.2 billion of equities in March

Inflows into China’s equities in March stood at US$7.2 billion, up from a rise of US$3.3 billion in February, according to the Institute of International Finance (IIF)

In contrast to China, emerging markets witnessed an outflow of US$400 million last month, a break from inflows in January and February

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China’s financial regulators have recently played up the prospects of investment into Chinese financial markets. Photo: EPA-EFE/ALEX PLAVEVSKI

Published: 12:00am, 7 Apr 2023Updated: 12:35am, 7 Apr 2023

Foreign investors continued to increase their holdings of China’s yuan-denominated assets in March amid the continuous upbeat sentiment after the country reopened its border and refocused on economic recovery, according to a US-based research report.

Inflows into China’s equities in March stood at US$7.2 billion, up from a rise of US$3.3 billion in February, according to the Institute of International Finance (IIF).

“Chinese equities are still enjoying the boost of sentiment provided by the relaxation of restrictions earlier in the year and thus have gained US$30 billion in the first three months of this year,” the institute said in its latest report.

In contrast to China, emerging markets witnessed an outflow of US$400 million last month, a break from inflows in both January and February, the report added.

Markets have begun to take a more cautious approach to developing-market assets as an early-year rally fades and a soft landing for the global economy appears

IIF

“Markets have begun to take a more cautious approach to developing-market assets as an early-year rally fades and a soft landing for the global economy appears,” the IIF report said.