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Foreign Investors Could Plow $3 Trillion Into China by 2025, Citi Says

  • This year may go down as a ‘tipping point’ for global assets
  • Domestic bond and equity markets seen roughly tripling by 2025
A man walks past the Shanghai World Financial Center in Shanghai.

A man walks past the Shanghai World Financial Center in Shanghai.

Photographer: Tomohiro Ohsumi/Bloomberg

China has opened a path for a transformation of its financial markets that could see them match the U.S. in size and lure more than $3 trillion in capital from abroad by 2025, according to a study by Citigroup Inc.

While the country’s initial efforts to internationalize its currency hit a bump in 2015, policy makers have shifted tack to focus on developing domestic financial markets rather than opening up the capital account, Citigroup analysts led by Liu Li-Gang, chief China economist for the bank in Hong Kong, wrote in a note. Steps like the bond and stock "connects" with Hong Kong represent this new approach, they wrote.