BEIJING, March 3 (Xinhua) -- Currently, the size and pace of foreign capital influx into China are still controllable, reported Xinhua Finance citing Guo Shuqing, head of China Banking and Insurance Regulatory Commission (CBIRC) Tuesday.
Guo made the remarks on a Tuesday news briefing, saying that it is natural for foreign capital to flow into China at present as China's economic recovery continues and China's assets are rather attractive in terms of prices given the relatively large spread compared with comparable foreign assets.
China is confident to strike a balance between encouraging cross-border capital flows to further opening up and at the same time avoiding drastic volatility on financial market at home, according to Guo.
Since the outbreak of the COVID-19 pandemic, global economy has weathered notable fluctuations, with most countries suffering economic downturns. Against such backdrop, developed countries in Europe and America, nations hit hard by the epidemic and some developing countries as well generally adopted active fiscal policies and extremely loose monetary policies, whose side effects have, however, gradually appeared.
With liquidity increasing notably worldwide, Chinese economy, closely linked with other economies thanks to the highly globalized world economy, witnessed significant increase in foreign capital inflow, added Guo.
Statistics with China Foreign Exchange Trade System (CFETS) showed that net purchase of bonds by foreign institutions on China's interbank bond market reached 143.8 billion yuan and they favored China's Treasury bonds and policy bank bonds, with the two types of bonds accounting for 54 percent and 27 percent of foreign institutional investors' total bond investments on interbank bond market last month. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
