TREE NEWS reports: Overseas institutions added about 1.6 billion yuan of Chinese government bonds in August, a fourth consecutive month of net buying, lifting their total holdings to nearly 2.03 trillion yuan. Holdings of policy bank bonds also rose slightly, by roughly 600 million yuan.
Foreign institutions boost China government bond holdings for fourth straight month
The steady accumulation matters less for its size than its persistence: four straight months of net buying suggests foreign institutions are treating Chinese government bonds as a standing allocation rather than a tactical trade. The modest shift into policy bank bonds alongside the sovereign exposure hints at a broader official-credit appetite. Whether this pace holds is the open question, given how small these monthly additions are relative to the overall stock.
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