Invest in China: Connecting global investors to China’s markets
Bloomberg Professional Services
China continues to open its financial markets to international investors to create easier access and greater liquidity for foreign investors. These initiatives, which include regulatory reforms and technological innovation, have attracted a growing number of participants.
Bloomberg is at the forefront of these developments to support and advance integration efforts. This commitment extended to the recent Invest in Asia: Spotlight on China event held in Abu Dhabi. Attendees heard from industry experts from China Foreign Exchange Trade System (CFETS), Bank of China, China International Capital Corporation, Guotai Junan Securities and AD Global Investors, along with Bloomberg.
By providing a platform for dialogue and connection in one of the most-watched bilateral investment relationships, Bloomberg is helping United Arab Emirates investors connect with opportunities in China and demystify the process required to access Chinese markets.
Diversification as a strategic advantage
China’s financial markets have become increasingly attractive to global investors, thanks to the country’s efforts to open up and integrate with the international financial system. China offers expanded diversification options for investors seeking to build balanced and robust portfolios in a volatile market environment.
As Bing Li, head of Bloomberg Asia Pacific, noted during the event, China has made significant strides in integrating its financial markets into the global economy, with “real innovations like Stock Connect, Bond Connect, and Swap Connect, all aimed at expanding investment opportunities for international investors.”
In the UAE and other Arab countries, China has strengthened ties with central banks through bilateral local currency swaps and RMB clearing cooperation. Meanwhile, the UAE is becoming one of the financial centers of the Middle East. These two major markets’ deepening economic ties create synergies and make China an even more attractive market for investors seeking diversification.
China’s growth trajectory
China remains a powerhouse of the global economy despite the challenges. From 2021 to 2023, the country’s contribution to global economic growth was equivalent to the combined contributions of the U.S. and the European Union. According to forecasts by the International Monetary Fund, China is expected to remain the largest contributor to global economic growth over the next five years. This sustained expansion underscores the strategic importance of including Chinese assets in a diversified investment portfolio.
The Bloomberg Invest in Asia event also highlighted China’s efforts to integrate sustainability into financial markets. The green bond market in China finances projects with clear environmental benefits, such as renewable energy developments and pollution-controlling initiatives. This growing market, already one of the world’s largest, offers investors an entry point into financially viable ESG and sustainability projects.
China’s commitment to sustainable finance is another key attraction for ESG-focused investors. The country aims to start reducing carbon emissions before 2030 and achieve carbon neutrality by 2060. This ambitious vision positions China as a leader in sustainable finance, particularly for global investors looking to align their portfolios with ESG principles.
“China has played a huge part in that globally in terms of the race to net zero,” Li said. “Without China’s participation, I think it’s very difficult for the world to achieve that goal.”
China’s investment in sustainable technologies is also noteworthy, including electric vehicles, renewable energy, and energy-efficient technologies. Government support and incentives have spurred growth and a favorable environment for innovation and investment. Meanwhile, corporate responsibility and ESG reporting are becoming increasingly important for Chinese businesses across sectors, reflecting a broader shift towards responsible business practices. This trend is attracting investors who prioritize sustainability and seek companies that demonstrate strong ESG performance.
Another growth driver is China’s consumer market, which has been rapidly expanding due to rising incomes and urbanization. The burgeoning middle class is driving demand for a wide range of products and services, from luxury goods to digital services. This consumer boom is creating opportunities for companies and investors alike.
Finally, China’s strategic initiatives, such as the Belt and Road Initiative, are enhancing infrastructure and economic connectivity across Asia and beyond. This initiative is expected to spur further economic activity and development projects, offering additional avenues for investment.
The world’s most dynamic markets
China is increasingly a prime destination for global investors looking for diversification, explosive growth potential and a focus on sustainable finance.
Bloomberg plays a crucial role in connecting China with global investors through education, data, analytics and other market insights. At the event, Erik Rotander, Head of Index Sales and Relationship Management for EMEA at Bloomberg, introduced the award-winning Bloomberg Index Solutions. These indexes, covering multiple asset classes, offer high-quality benchmarks that help investors measure and optimize their performance.
Bloomberg’s advanced analytics give investors a deeper understanding of these vibrant markets. With Bloomberg’s comprehensive data, real-time analytics, and expert insights, investors can identify trends, assess risks, and uncover opportunities in the Chinese market with confidence. Additionally, Bloomberg’s electronic trading platform provides powerful tools to help investors effectively trade in the Chinese market.
Learn more about Bloomberg’s China market access solutions here.