Pension institutions from multiple countries around the world have been accelerating their presence in the Chinese market since the beginning of this year, with a growing focus on Chinese assets.
Since the beginning of this year, the list of the Qualified Foreign Institutional Investors (QFII) has continued to expand.
The pension schemes from University of London submitted an application for the QFII, which was formally accepted by the China Securities Regulatory Commission in March.
The Board of the Pension Protection Fund of the United Kingdom has been greenlighted by the China Securities Regulatory Commission in March as an eligible overseas institution to invest in China's domestic securities and futures market.
"Currently, qualified foreign institutional investors are showing an accelerated development trend and are increasingly strengthening their presence in the Chinese market, which indicates that overseas long-term investment funds recognize the medium and long-term development prospects of the Chinese economy. It also shows that China's policy stability in opening up its financial markets has been recognized," said Tian Lihui, dean of Nankai University's Institute of Finance and Development.
The latest report from the Institute of International Finance (IIF) revealed that foreign funds recorded a net purchase of 1.7 billion U.S. dollars in Chinese stocks and 2.1 billion U.S. dollars in Chinese bonds in March 2024, marking the first occurrence of simultaneous foreign net purchase in Chinese stocks and bonds since June of last year.
"In terms of the recent increase in foreign shareholding in the Chinese capital market and the performance of Chinese assets, the core driving factor behind this is the fundamentals sustaining the sound growth of the Chinese economy. A steady economic recovery and a prudent monetary policy provide support to the real economy, and also continue to provide support to the operating conditions of listed companies. This will continuously attract various types of long-term funds to increase their holdings in Chinese assets," said Yang Chao, head of the strategy team at China Galaxy Securities.
Foreign pension institutions accelerate presence in Chinese market
