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In 2020, foreign investment in China will increase by 81% year on year. Why?

Pubdate:2021-04-08 00:00 Source:Xinhua.net Click:2580
 
 
81%! Recently, the State Administration of Foreign Exchange released the "China's balance of payments report 2020", which revealed that in 2020, foreign investment in China will reach 520.6 billion US dollars, an increase of 81% over 2019.
 
 
 
In 2020, under novel coronavirus pneumonia, the world economy was in serious recession and the international financial market fluctuated greatly. However, China's economy has been suppressed first and then developed, and has walked out of an extraordinary economic growth curve.
 
 
In 2020, China will not only become the only major economy with positive growth in the global economy, but also the largest inflow of foreign capital in the world according to the report of the United Nations Conference on Trade and development.
 
 
 
——The "gold absorbing effect" of direct investment
 
 
 
Direct investment, like a "vote", represents the trust and support of international capital for the medium and long-term trend of a country's economy.
 
 
 
"We have achieved remarkable results in the prevention and control of the epidemic, and the resumption of work and production has been promoted rapidly. Coupled with China's good economic fundamentals, the economy has recovered rapidly. In the context of novel coronavirus pneumonia global pandemic, this greatly enhances China's attraction to foreign investment. International finance expert Zhao Qingming said.
 
 
In 2020, leasing and business services, information technology services, and manufacturing industries will rank in the top three, accounting for 18%, 17%, and 16% respectively. It can be seen from this that foreign investment has great confidence and expectation in the medium and long-term development of China's economy. In Zhao Qingming's view, under the new development pattern, the "double growth" expectation of scale growth and proportion growth of service industry will continue to become the "gold point" for China to attract foreign direct investment.
 
 
 
——"Two wings flying together" in financial field
 
 
 
"Beach landing" and "running approach" In 2020, foreign investment in China's financial sector can be described as "eye-catching".
 
 
 
On the one hand, benefiting from the open policy of abolishing the restrictions on the shareholding ratio of foreign financial institutions, foreign financial institutions have increased their investment in financial institutions in various ways, resulting in a substantial increase in the amount of foreign direct investment in China's financial industry; on the other hand, RMB assets are sought after, and foreign capital has expanded the scale of domestic RMB asset allocation, constantly pushing up the foreign investment in securities Degree.
 
 
Zhao Qingming said that the global liquidity is overflowing and the global financial market is in turmoil. In contrast, China's normal monetary policy has resulted in relatively outstanding bond yields. In addition, China has continued to promote the high-level two-way opening of the financial market, which has led to a significant growth of foreign investment in securities.
 
 
 
Facing the future, we can foresee that more and more top international financial institutions will continue to increase their investment in China's financial industry, while China's bond market and stock market have been absorbed into the major international financial indexes, and the RMB assets in the domestic market of international long-term capital allocation will continue to increase.