EM Push & Pull: As China Rises, Competition for Capital Heats Up (Aviva Investors)
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
- Why a Financial Crisis is NOT Brewing in China (Institutional Investor)
- Be Wary of the MSCI China Inclusion Hype (WSJ)
- Five Misconceptions About China’s Stock Markets (KraneShares)
- China Loses #2 Creditor Rank to Germany (Bloomberg)
- China’s $246B Foreign M&A Buying Spree Is Slowing (Bloomberg)
- Trade War Steers Chinese Investment Toward Southeast Asia (Nikkei Asian Review)
- China M&A a Bright Spot Amid Regional Decline (The Asset)
- EXS Capital’s Solberg: China’s Property and Steel Sectors Look Interesting Now (CMN)
- Fund Managers Are Wary of “Cheap” Asian Stock Markets (FT Adviser)
- China Offers Tax Incentives to Persuade U.S. Companies to Stay (NYT)