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
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