Global investors more bullish on Chinese assets

Currency stability, overall independent return profile seen as important aspects

China's capital markets are gaining increasing traction among global investors as foreign investment surged back in the first half of this year, supported by the country's economic resilience, continuing opening-up policies and growing demand for more diversified and renminbi-denominated assets, officials and experts said on Tuesday.

Net inflows of foreign investment in China's securities market — including bonds and equities — reached approximately $33 billion in the first five months of the year, reversing a net outflow seen in the second half of last year, the State Administration of Foreign Exchange said on Tuesday.

The renewed confidence is particularly evident in the stock market, as foreign investors posted a net increase in holdings of $10.1 billion in onshore stocks and funds in the first half, ending a two-year trend of net outflows. During the May-June period, the net increase surged to $18.8 billion, the SAFE said.