As 2021 heats up, China is grappling with what might be seen as an enviable problem: more foreign capital zooming its way than Asia’s biggest economy knows what to do with.
With steady efforts to open the financial system in recent years, President Xi Jinping certainly put out the welcome mat. These upgrades are now dovetailing with the globe’s best post-Covid-19 recovery and the highest yields among major economies.
So the taps are on – full blast. The last 12 months saw a 62% surge in foreign buying of mainland stocks and a 47% jump in demand for bonds.