Foreign investors increase holdings of Chinese financial assets

Updated: Aug 23, 2021 By Yang Yang chinadaily.com.cn Print

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Chinese market is an essential part of global investment portfolio, playing a very important role in diversification. [Photo/IC]

Foreign investors are still increasing their holdings of Chinese financial assets, International Financial News reported on Monday.

Foreign investors value long-term economic growth and capital market development in China, which has world's second-largest stock market, said analysts.

Chinese stock market's volume will continue to grow, as the country's economy continues to grow and the proportion of direct financing in the financial system increases.

Chinese market is an essential part of global investment portfolio, playing a very important role in diversification.

Some institutional investors increased the holdings of Chinese concept stocks in the second quarter although some decreased the holdings due to the impact of regulatory policies in China and the US.

Goldman Sachs Group Inc's latest holdings report indicated that the group's holding of Chinese concept stocks rose to 4.7 percent from 4.4 at the end of Q1.

In the second quarter, the company increased holding of Alibaba's US stock by 5.88 million shares to 30.5 million shares from 24.63 million shares at the end of the previous quarter.

The secondary market team of Hillhouse Group continued to increase investment in Chinese concept stocks in Q2, holding 89 companies, among which 7 were new and increased holdings of Chinese concept stocks.

Ray Dalio, founder of Bridgewater Associates, said Chinese concept stocks should be considered as important part in investment portfolio and investors should observe the trends instead of misinterpreting and paying too much attention to fluctuations.

In the long-term, China's economy remains stable and progressing for the better and the country's policymakers have always valued innovation and committed to deepening market reforms, said Lu Jie, chief investment officer of Dutch asset management firm Robeco China.

The top priority of China's development in the coming years will be technological independence, which will eventually become China's "strategic pillar", Lu said.