China’s economy dwarfs most of its emerging market peers, but it has not traditionally attracted foreign capital flows commensurate with its vast size. That may be about to change.
Two key drivers are leading China to hoover up more overseas capital. The first is its declining current account surplus. Morgan Stanley analysts forecast China will run a deficit this year, for the first time since 1993.1 The government is loosening rules over foreign investment as it seeks to plug the gap.
The second driver is China’s inclusion in several global market indices. READ MORE
Similar Posts:
- Understanding China’s Economic and Market Developments: Managing China’s Transition into Global Benchmarks (FTSE Russell)
- China’s $246B Foreign M&A Buying Spree Is Slowing (Bloomberg)
- How China’s Middle Classes Move Their Money Abroad (SCMP)
- India ETF Flows Touch $1.5 Billion, Highest Among its BRIC Peers (Economic Times)
- What’s Really Driving China’s Currency Stability (KraneShares)
- China Venture Capital Deals Shrink Amid Regulatory Concerns (Nikkei Asia)
- China is a Minefield for International Creditors (Washington Examiner)
- China A: Opportunity for Active Managers (William Blair)
- China Icebergs: Forces That Could Reshape the World (PineBridge Investments)
- China Loses #2 Creditor Rank to Germany (Bloomberg)
- Five Misconceptions About China’s Stock Markets (KraneShares)
- Sizing up Chinese Equities: A market Too Big to Ignore (Robeco)
- Norway’s Sovereign Wealth Fund Slows Emerging Market Investment (Bloomberg)
- ‘I Can’t Get My Money Out’: Billionaire Investor Mark Mobius Says China is Restricting Flows of Capital Out of the Country (The Insider)
- Deutsche Bank: Emerging Market Rally is a False Dawn (Barron’s)