FirstFT: Global investors’ exposure to Chinese assets surges


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Global holdings of Chinese stocks and bonds have Soaring to more than 800 billion US dollars Although the relationship between Beijing and the international community has deteriorated, investors are still buying assets in the country at a record rate.

Even in the case of tensions between Beijing and Washington over Sino-US issues, global investors have poured into the Chinese market. Company audit Beijing’s repression of Uyghurs in Xinjiang is called genocide by the United States.

This also coincides with one Beijing crackdown China’s listing on the US capital market includes a data security investigation announced a few days after the U.S. ride-hailing group Didi Chuxing’s $4.4 billion initial public offering in New York.

According to the results calculated by the Financial Times based on Bloomberg data, so far this year, foreign investors have purchased a net US$35.3 billion worth of Chinese stocks through trading platforms that connect Hong Kong and Shanghai and Shenzhen exchanges. This is about 49% higher than a year ago.

According to data from Crédit Agricole, so far this year, foreign investors have also purchased more than 75 billion US dollars of Chinese government bonds, an increase of 50% over the same period last year.

The country’s rapid rebound from the Covid-19 pandemic has stimulated foreign buyers’ enthusiasm for Chinese assets, but people are worried about it. Economic growth is slowing.

There are five more stories in the news

1. Global inflation puts pressure on governments Federal Reserve Chairman Jay Powell stated that the Fed Ready to intervene If inflation gets out of control, but emphasizes that he expects prices to rise Relax later this year. in India, Price increased The quantity of necessities puts pressure on consumers and poses a challenge to Narendra Modi’s government, while the UK’s inflation rate Rise to 2.5% In June.

2. Brussels announces plan to reduce European carbon footprint Depart from Brussels Comprehensive plan On Wednesday, the European Union will be the forerunner in the world to achieve net zero emissions to limit global warming. Its strategy is aimed at all sectors of the economy and trade.

  • View: The lack of a truly global response to the pandemic is not conducive to joint action against climate change, Martin Wolf writes.

3. UAE and Saudi Arabia approaching oil production agreement The two countries have reached Transaction outline Four representatives and advisers of the organization said on Wednesday that this will open an agreement between OPEC and its allies to increase oil production, but warned that discussions are still going on and the agreement has yet to be finalized.

4. Facebook says FTC chairman should withdraw from antitrust case The social media platform has asked Lina Khan, the new chairman of the Federal Trade Commission, to Back off From deciding whether to file an antitrust lawsuit against this technology group, it marks an escalation in the struggle between the head of the regulator and the largest company in Silicon Valley. For the latest technology news, subscription Chris Natal #techFT Communication.

5. Sumitomo Mitsui acquires a stake in Jefferies Sumitomo Mitsui Financial Group Agreed to pay 386 million U.S. dollars The acquisition of up to 4.9% of Jefferies’s shares, because the conservative large Japanese bank set its sights on Wall Street’s rich, and marked the return of the Bank of Japan to US-focused mergers and acquisitions after more than a decade of interruption.

Coronavirus Digest

  • Central Bank of New Zealand Say yes Stop buying bonds This month, this Pacific country became one of the first developed countries to withdraw from pandemic monetary stimulus measures.

  • Korea set as Tighten Covid-19 restrictions Most parts of the country are fighting the worst epidemic to date.

  • mayor London And leadership Scotland with Wales Breaking the military After most of the restrictions in England ended next week, the government of British Prime Minister Boris Johnson insisted on wearing masks on public transport.

Follow our latest news about coronavirus Live blog with Sign up For us Coronavirus business update Learn more about Covid-19 news in the newsletter.

the day before

China’s GDP When the second-quarter data is released today, the focus will be on any signs of economic slowdown.here has Five things Watch out after the announcement on Thursday.

Morgan Stanley earnings Morgan Stanley will close this week Bank of America earnings announcement.It follows Bank of America and Citigroup, Reported a decline in revenue on Wednesday.

Merkel’s last official visit to the U.S. Angela Merkel said that during her visit with Joe Biden, she will discuss the differences between Germany and the United States on the Beixi-2 project. Thursday -It may be the last time she has served as Chancellor of Germany-but I don’t know if they will actually reach an agreement.

Other content we are reading and watching

Can the Olympics be held behind closed doors? Tokyo Olympics Promise resurrection Japan’s self-confidence after decades of economic stagnation opened its doors to the world as an equal, and spiritually reconnected with the young country of the 1964 Olympics, when the country declared itself a democracy. Covid threatens these goals.

Thanks to the readers who participated in our poll yesterday. 59% of respondents said that given the Covid-19 situation, the Tokyo Olympics should not proceed as planned.

Private credit joins private equity to freeze banks In order for the private equity firm Thoma Bravo to recently acquire Stamps.com for US$6.6 billion, the group turned to private lenders to seek US$2.6 billion in debt financing.The deal emphasizes Private credit funds are fully fired According to the people involved in the recent transaction, and how they used the cash for work.

Cuba needs new thinking to prevent further protests If Cuba’s largest wave of protests in decades were spontaneous, then the government’s response would be nothing more than, Michael Stowe of the Financial Times wrote. The government’s response is as old as the challenges faced by a one-party state: a failed economy and a rigid political system.

During a protest in Havana, Cuba, police scuffled and detained an anti-government demonstrator © Ramon Espinosa/AP

During a protest in Havana, Cuba, police scuffled and detained an anti-government demonstrator © Ramon Espinosa/AP

Competition enforcement is harder than it seems After years of growing unease about business mergers and the dominance of large companies, the government is taking action to prevent business mergers. However, law enforcement cases often make a list of “not to do” when the industry really needs some “not to do”. Writes Master Brooke.

‘My friends were sent to the camp one by one’ A few years ago, Tahir Hamut Izgil was an Uber driver in Washington, DC. Few of his passengers knew that he was also a well-known Uyghur poet, who fled government persecution and came to the United States in 2017.Now, when he applied for asylum, he chose Tell his story. (Atlantic)

Food and drink

Grilled Peach Silk Tofu Roasted peaches, as Ravinder Bhogal does This recipe, Maintain its natural sweetness. They pair perfectly with the bittersweet Thai basil in the rich gremolata.

Newsletter recommended for you

Swamp notes — Expert insights into the intersection of money and power in American politics.registered Here

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