Overseas investors bullish on Chinese onshore bonds

Foreign investors continued to pile into Chinese onshore bonds even as the renminbi remained weak against the US dollar for most of the last quarter, as higher yields and robust economic prospects helped maintain interest in the instruments, analysts said on Wednesday.

Overseas investors recorded net purchases of 321.1 billion yuan ($45 billion) in the China interbank bond market during the third quarter of this year, according to the China Foreign Exchange Trade System. During the first six months, the figure was about 500 billion yuan.

Overseas investors traded 528.1 billion yuan worth of Chinese onshore interbank bonds last month, representing 3 percent of the total market trading volume, up from 2 percent in the first half of the year, the CFETS said.