Trend of cash inflows set to steady yuan

Analysts optimistic on China's appeal to foreign investors, improved policies

China has seen steady growth of capital inflows in the first half this year, in terms of both foreign direct investment and holdings of onshore financial products, despite global trade tensions and currency turmoil in some emerging markets.

Analysts say the trend may continue in the coming months, which will help support a stable yuan and balance cross-border capital flows. As a wider opening-up of the country's financial sector unfolds, foreign investor confidence in the Chinese economy will be strengthened further, they said.