Drivers of portfolio flows into Chinese debt securities amidst China's bond market development

Arbeitspapier

The paper focuses on China's onshore bond market and the drivers of non-resident net portfolio flows into Chinese debt securities. Building on a theoretical model of push and pull factors as a foundation for the empirical analysis on drivers of bond flows into China, static and time-varying models are estimated to explain the importance of various push and pull factors in the context of China's bond market development. While China-specific pull factors, such as domestic economic growth prospects and asset returns, are important drivers of bond flows, the results reveal that global push factors, such as US interest rates and investor risk aversion, have recently gained significance as drivers of flows into China. This shift goes hand in hand with China's gradual bond market liberalization measures. The findings confirm China's continued bond market deepening and integration with the rest of the world.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: BOFIT Discussion Papers ; No. 8/2023

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Current Account Adjustment; Short-term Capital Movements ; International Lending and Debt Problems ; Financial Aspects of Economic Integration ; Open Economy Macroeconomics ; Portfolio Choice; Investment Decisions ; Financial Institutions and Services: Government Policy and Regulation
• Thema: capital flows ; portfolio flows ; push factors ; pull factors ; financial openness

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): McCully, Tuuli
• Ereignis: Veröffentlichung
• (wer): Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT)
• (wo): Helsinki
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/280981
• URN: urn:nbn:fi-fe20231205151484
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ