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Foreigners Increase Chinese Bond Holdings In March

CHINA
  • Foreign investors boosted their holdings of China's onshore yuan bonds in March, the foreign exchange regulator said on Friday, expecting more capital inflows amid signs of economic recovery. (Reuters)
  • The regulator listed a weaker USD, diminishing yield gap and positive signs for the domestic economy as contributing to the inflows.
  • "China's economy will continue to rebound and the opening up of the financial markets will be steadily promoted, and there is still room for foreign capital inflows," said Wang Chunying, spokesperson of the State Administration of Foreign Exchange (SAFE).
  • Global institutional investors increased their holdings of Chinese onshore bonds traded in the interbank market in March by 10 billion yuan ($1.45 billion) to 3.21 trillion yuan, official data from the central bank's Shanghai head office showed on Friday, snapping two straight months of outflows.

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