2020 has been a landmark year for Chinese markets, say Hudson Lockett and Thomas Hale in the Financial Times. Foreign investors have bought more than ¥1trn (£113.5bn) of local assets. Onshore bonds have been attracting particular attention, and little wonder: the US ten-year Treasury bond yields 0.9%, compared to 3.3% for the Chinese equivalent. There were ¥900bn (£102bn) in net foreign inflows into bonds during the year through to the end of November. Local stocks also took in ¥170bn (£19bn) from overseas buyers. The CSI 300 stock market benchmark is up more than 19% this year.
The world’s sudden need for masks and gel, coupled with demand from locked-down workers for IT equipment, has played to the country’s “manufacturing strengths”: medical equipment exports rose 42.5% on a year before during the first 11 months. Electronics exports rose 25% last month on the year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Zoopla: House prices slows to 1.4% in May as rate of sales at four year highThe average UK property now costs £268,400, Zoopla says, but some areas of the country are experiencing much higher price growth than others.
-
FCA reveals 'once in a generation' advice changes - what the reforms mean for youConsumers to get free access to financial advice type help for pensions and investment following proposed changes from the regulator
-
Investors remain calm as the Middle East war unfoldsConflict in the Middle East has failed to shake oil or stock markets. Can the peace hold?
-
The British railway industry is in rude health – here's why investors should jump aboardThe railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
US and China reach a ceasefire in their trade war after talks in LondonThe US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
-
Infrastructure investing: a haven of stable growth amid market turmoilFrom booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
The costly myth of “sell in May”Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
Who’s driving Tesla?As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.
-
Investment opportunities in the world of Coca-ColaThere is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.
-
Streaming services are the new magic money tree for investors – but for how long?Opinion Streaming services are in full bloom and laden with profits, but beware – winter is coming, warns Matthew Lynn
