What the United States is worried about finally happened. The largest buyer of US bonds successfully sold 47 billion yuan, and hundreds of billions of funds have flowed into China
The era of "dollar hegemony" has become a thing of the past. From public data analysis, starting from March this year, US bonds have been sold to varying degrees. It is worth mentioning that Japan even set a record for selling. In April, Japan's total net selling scale reached US$47 billion, a record high. In contrast to the development of the United States, China's economic development has always been relatively stable. According to rough estimates, at least hundreds of billions of foreign capital have entered the Chinese market this year.
The first major holding country has significantly reduced its holdings of US debt. Why?
Experts analyzed that the reason why Japanese investors and related institutions made this move is entirely to pursue higher returns. As early as March, the Federal Reserve restarted its zero-interest rate policy. Because of this, the long-term interest rates of US Treasury bonds fell to the range of 0.4%-0.6. During the same period, the yields of government bonds in Italy and Australia rose. In this case, Japan only targeted other countries. Data shows that Italy's long-term government bond interest rate once rose to 2.1%. From the intuitive data, it can also be seen that the attractiveness of the US dollar is no longer as good as before.
In the latest international capital flow report released by the United States, the total value of overseas investors selling US bonds in April has exceeded US$170 billion. At the end of April, the scale of overseas holdings of US bonds hit the lowest record of the year. As the largest overseas holding country of US bonds, Japan reduced its holdings by US$5.7 billion in a certain period of time. Immediately afterwards, China and the UK, the second and third, also reduced their holdings of US Treasury bonds, with a total of US$41.3 billion. After surviving the epidemic crisis, China's economy has also entered a recovery stage, and a large amount of foreign capital has also flowed into my country's market.
00 billion foreign capital has flowed into the Chinese market
According to China Securities Journal, as of the end of May this year, my country's foreign capital had net increased its holdings of 111.936 billion yuan RMB bond , close to the total increase in the previous four months. Not only that, foreign capital has also continued to flow into the A-share market, with a total inflow of 80 billion in April and May, and foreign capital inflows into China's A-shares in the second quarter also exceeded 100 billion yuan. Practice has proved that the operations of the People's Bank of China to issue central bills four times this year have also been highly recognized by overseas investors.
Has the policy of the People's Bank of China was released, banks and fund institutions in many countries in the United States, Europe and Asia actively participated in the subscription, including many international financial organizations and institutional investors. It can also be seen from this that the RMB is already quite attractive, and global investors are also very optimistic about the development of my country's economy. What is certain is that if my country's economy has been under stable development, more foreign capital will enter the Chinese market in the future.
