FirstFT: Global holdings of Chinese stocks and bonds increase by $ 120 billion in 2021

Hello. This article is an on-site version of our FirstFT newsletter. Subscribe to our Asia, Europe / Africa or Americas edition to receive it directly to your inbox every morning of the week

Global holdings of Chinese stocks and bonds have jumped by around $ 120 billion in 2021 as international investors seek returns in the country’s markets despite Beijing’s interventions.

International investors held 7.5 billion Rmb ($ 1.1 billion) of renminbi-denominated stocks and fixed income securities at the end of September, up about 760 billion Rmb from the end of 2020, according to Financial Times calculations.

The rise shows how investors are accessing mainland Chinese markets directly, rather than through financial instruments listed in New York and Hong Kong. It comes at a time when some analysts and investors fear that strong developed market returns may be exhausted, causing them to look elsewhere for opportunities.

China’s offshore listings have had a tumultuous year, with a succession of regulatory crackdowns shaking investor confidence in sectors ranging from technology to education. Meanwhile, a liquidity crisis at real estate developer Evergrande sparked a series of massive sell-offs of high-yield dollar bonds traded internationally by Chinese issuers.

Do you think tensions in the Chinese real sector present global risks? Tell me what you think [email protected]. Thanks for reading FirstFT Europe / Africa. Here’s the rest of the news – Gary

Five other articles in the news

1. UK supports Rolls-Royce mini nuclear power plant design An industry consortium led by Rolls-Royce and the UK taxpayer will inject £ 405million into the development of a fleet of mini-reactors as part of a new push towards nuclear power designed to help the government achieve its net zero carbon targets.

An illustration of a small Rolls-Royce modular reactor. Each mini power plant would be capable of producing enough low-carbon electricity for around 1 million households

2. The editor wants to know who is sleeping with the boss German publishing giant Axel Springer plans to require its nearly 16,000 employees to disclose sexual relations between managers and subordinates, following scandal that led to editor-in-chief’s ouster by Bild.

3. The rise in inflation generates negative real interest rates Soaring inflation is leaving the world’s major economies with their lowest real interest rates in decades, as central banks delay any abrupt tightening of the extra-loose monetary policy used to help weather the pandemic.

Bar chart of the difference between nominal policy rates and inflation showing that real interest rates are deeply negative in developed economies

4. Ek’s € 1 billion European technology fund invests in Helsing A year after launching a € 1 billion fund to boost European technology, Spotify co-founder Daniel Ek made his first investment in Helsing, a defense technology start-up that produces live maps of battlefield.

5. Friends reunited as US lifts travel ban Families and friends rushed to reunite after yesterday’s lifting of pandemic-era border controls that banned most travelers from the UK and Europe.

Summary of COP26

Barack Obama speaks at COP26

Barack Obama received a standing ovation after his speech. “Vote like your life depends on it, because it does,” he said © REUTERS

Today Moral Money, our sustainable finance newsletter, has five things to look out for at COP26 this week. Click on here to read and subscribe to the newsletter, published every day of the week during the Glasgow summit.

The day to come

Macron will address France French President Emmanuel Macron is due to address the nation about his economic reform plan and the rise in infections in the coronavirus pandemic. (Reuters)

Earnings Companies reporting results today include Associated British Foods, Aveva, Bayer, Coinbase, Direct Line, Mediaset, Munich Re, Nissan, Porsche, Salvatore Ferragamo and Swiss Life.

What else do we read

The investment industry is getting tougher on the climate Tired of having low-key conversations with companies about emissions and how global warming will affect long-term valuations, many investors are now threatening to divest. Their change in attitude could have huge ramifications for global businesses.

China’s self-isolation is a global concern Beijing’s zero Covid policy hurts international trade and global governance, writes Gideon Rachman. And as the outside world evolves into a life with low levels of disease, contact with foreigners may seem even more dangerous for China.

Chinese President Xi Jinping, most important guest at COP26, failed to show up

Chinese President Xi Jinping, the most important guest at COP26, did not show up © James Ferguson

Don’t throw away the chintz – or the Billy library Ikea operates an international program to take back used items and resell them under the name “Buy Back and Resell”. It’s quite a turnaround for the global furniture superpower in the name of sustainability. But if Ikea now feels the need to atone for its past, what about you, the consumer?

The Paterson saga shows that politics needs fixing Martin Bell, who was MP from 1997 to 2001, says today could be better than the “fill your boots, boys” era that preceded it, but the potential for corruption is still there.

Different readings of inflation by central bankers Policymakers have described radically different responses to the global inflation spike, with senior US and UK officials signaling that interest rates are set to rise soon in their countries despite such a policy shift that remains a distant prospect in the future. eurozone.

Home & Home

Take a look at these five houses for sale with literary links. They range from a Georgian house in Berkshire where Jane Austen was a frequent guest to John Steinbeck’s cottage on Long Island.

This Georgian house was built in the 1700s for the uncle and aunt of English novelist Jane Austen, who frequently visited and attended school nearby.

Thanks for reading and don’t forget that you can add FirstFT to myFT. Send your recommendations and comments to [email protected]

Recommended newsletters for you

Britain after Brexit – Keep up to date with the latest developments as the UK economy adjusts to life outside the EU. register here

The coming week – Start each week with an overview of what’s on the agenda. register here

Comments are closed.