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1/5
Good article. Beijing has opened up its financial markets to foreigners far more quickly and aggressively than most of us would have expected. Total foreign portfolio holdings of Chinese stocks and bonds are still relatively small (around... https://www.ft.com/content/a5392f07-9deb-4573-beb1-88a946f00df5?desktop=true&segmentId=7c8f09b9-9b61-4fbb-9430-9208a9e233c8
Good article. Beijing has opened up its financial markets to foreigners far more quickly and aggressively than most of us would have expected. Total foreign portfolio holdings of Chinese stocks and bonds are still relatively small (around... https://www.ft.com/content/a5392f07-9deb-4573-beb1-88a946f00df5?desktop=true&segmentId=7c8f09b9-9b61-4fbb-9430-9208a9e233c8
2/5
$800-900 billion) but growing fast. I believe foreigners now own roughly 10-15% of the stock market float and 5% of bonds, and because Chinese securities have decent yields and are fairly uncorrelated with foreign securities, I expect these shares to grow substantially.
$800-900 billion) but growing fast. I believe foreigners now own roughly 10-15% of the stock market float and 5% of bonds, and because Chinese securities have decent yields and are fairly uncorrelated with foreign securities, I expect these shares to grow substantially.
3/5
I wonder however if Beijing will begin to move as quickly to clean up the domestic banks and eliminate the moral hazard that underpins the financial system. It seems to me that it is risky to do too much opening up with such a distorted financial sector, although for...
I wonder however if Beijing will begin to move as quickly to clean up the domestic banks and eliminate the moral hazard that underpins the financial system. It seems to me that it is risky to do too much opening up with such a distorted financial sector, although for...
4/5
years there have been suggestions that banking regulators have promoted the former precisely to increase pressure to repair the latter.
Let's see how aggressively they move. I spent much of my career trading developing country bonds, and I know that when...
years there have been suggestions that banking regulators have promoted the former precisely to increase pressure to repair the latter.
Let's see how aggressively they move. I spent much of my career trading developing country bonds, and I know that when...
5/5
foreign money is pouring into a country, it is very hard to convince regulators, analysts and journalists that conditions can easily reverse, but they can and do.
foreign money is pouring into a country, it is very hard to convince regulators, analysts and journalists that conditions can easily reverse, but they can and do.
