Over 60 pct int'l investors plan to expand investment portfolio in China within 1 year, survey

62 percent of the top international institutional investors and large companies plan to further expand their investment portfolio in China in the next one year, with the average growth rate expected to reach 24.5 percent, according to a latest survey made by HSBC Qianhai, a securities joint venture between HSBC and Qianhai Financial Holdings.

The survey, conducted between August and September, targeted 935 institutional investors and large companies located in Asia Pacific, Europe and North America.

According to the survey, under the background of global low interest rates, attractive yield is an important factor for overseas investors to increase their investment in the Chinese market. Other factors include broadened market participation channels and China's growing presence in international indices.

Statistics showed that the average number of participation channels used by overseas institutions stands at 1.7. 

"International investors' interest in the Chinese financial market is at the highest level now. With China's continued opening-up measures, international investors from all over the world have rushed into the Chinese capital market," said Justin Chan, head of Greater China, Global Markets, HSBC.

Viewing from the transaction data, international investors' participation in China's bond and stock markets has increased significantly. In the first nine months of 2020, the transaction volume of the northbound of Bond Connect surged 122 percent year on year. The northbound trading of Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect increased by 157 percent and 77 percent year on year respectively.

The survey also showed that China's further improvement in local rating system and fund remittance system will help increase the enthusiasm of overseas institutional investors.