Overseas investors eye China

Offshore institutional investors are optimistic about investing in China, said a survey released by London-based Standard Chartered on Tuesday.

The survey in March gathered responses from over 180 investors, regulators and custodians in Asia, Europe and North America, gauging their views on issues impacting investors wanting to access China’s onshore markets.

Eighty-eight percent of the interviewed investors said they were currently investing in China, up from 69 percent in 2017. Among those investing in China, 76 percent said they would increase their China investments.

The simplicity, clarity and flexibility of new access mechanisms such as Stock Connect and Bond Connect were the main reasons for the positive sentiment.

Over three quarters of the respondents said that the new channels have greatly influenced their decision to increase their investment. When considering future investment, 43 percent plan to use Stock Connect and 23 percent Bond Connect.

Margaret Harwood-Jones, global head for securities services of transaction banking at Standard Chartered, said sentiment toward China has never been better, with more people investing in China than ever before.

“The results of our survey show that China access is moving into a new era, one where concern over regulation gives way to more practical considerations. The decision about whether to invest in China is no longer a question of if, but when.”