Foreigners Go Deep Into China With Record Local Debt Binge
- Global funds added record amount of municipal bonds in June
- Purchases of sovereign notes slow down for a second month
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Global investors made their biggest ever purchases of Chinese municipal debt in June, an indication of growing confidence in a market that’s becoming a global asset.
Overseas investors added 730 million yuan ($113 million) of local government notes, according to figures from ChinaBond. Although that’s minuscule compared to the 13.4 billion yuan of sovereign debt they bought, it’s still a record gain based on data compiled by Bloomberg going back to 2018. The move also coincides with a further slowdown in purchases of sovereign bonds.