Foreign Exchange Administration

What Drives Cross-Border Portfolio Flows?

来源: 2022 Issue 3

Authro:  Gene MA, Phoebe FENG and Andrew LOEVINGER 

Portfolio investment flow to China is a weathervane for China's financial health and global investor confidence. Chart 1 shows the capital flows via the Stock and Bond Connects in February-June.  We studied the forces that drive China's net bond and equity flows. It shows that relative economic growth,bond yields,RMB exchange rate,market volatility,and index inclusion explain about 50% of the flows (Chart 2). Many other factors,such as policy and geopolitical risk,which are hard to quantify,are also behind the ebb and flow of portfolio investments.

Snipaste_2022-09-13_10-45-52.png

Snipaste_2022-09-13_10-45-57.png

本文是付费内容,请先 登录数字阅读账户订阅数字杂志