Overseas investors increase holdings of Chinese bonds despite coronavirus uncertainty

Demonstrating confidence in China, international investors continued to invest in the country’s economy. Net purchases of Chinese bonds were worth 43 billion yuan ($6.1 billion) after the Spring Festival, market data showed.

According to China Foreign Exchange Trade System, the country’s bond market has become an important part of global asset allocation. It said, as cited by Xinhua News, that it will continue to improve overseas services and enhance financial infrastructure to facilitate bond trade.

Analysts largely expect growth to rebound after the containment on pent-up demand and production, the foreign exchange added.

The outbreak of the COVID-19 (coronavirus) has now killed more than 2,000 people and infected more than 75,000 people, with over 1,000 cases outside mainland China. It has disrupted economic activity in China and threatened to drag down first-quarter growth.