Foreign investors cut holdings in Chinese bonds for a fifth straight month in September, official data showed yesterday, reflecting the reduced allure of Chinese debt.
Overseas institutions held 3.78 trillion yuan ($530.68 billion) worth of bonds in China’s interbank market at the end of last month, 50bn yuan less than a month earlier, according to central bank data.
Foreign holdings in Chinese bonds have declined since April as Chinese debt market softened amid rising risk appetite and a bullish stock market. China’s 30-year bond futures slumped more than two per cent in September and registered a three-month losing streak.
By the end of September, foreign holdings accounted for 2.2pc of China’s interbank bond market, compared with 2.9pc a year earlier.
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