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Expand chart
Data: Wind Information; Chart: Chris Canipe/Axios

China's bond and equity markets have been slowly opening up to foreigners. They're now beginning to see fairly significant inflows that are growing much more quickly than foreign direct investment.

What's happening: Over the past 8 years, foreign investment in China's stocks and bonds has grown 6-fold to nearly $1.3 trillion, per Wind Information data shared by Seafarer Funds. And Americans are responsible for nearly half of that total, scooping up $535 billion worth of Chinese assets, with significant flows in recent months.

What they're saying: Nicholas Borst, director of China research at Seafarer Funds, writes ...

"A recent spate of reforms have led to a considerable opening of China’s capital account. Whether via the Stock Connect, the Bond Connect, the expansion of the Qualified Foreign Institutional Investor (QFII) program, or direct access to the interbank bond market, foreign investors have an unprecedented ability to buy and sell Chinese securities."
"Capital inflows into China have increased significantly, even amid the volatilities of its economy and stock markets."

Yes, but: The level of Chinese assets owned by American investors is still low compared to U.S.-based funds and even to other emerging markets, Borst tells Axios. The current level of investment represents less than 5% of total U.S. investor holdings.

  • "Consequently, it’s hard to argue that U.S. investors play an important role as a source of capital for domestically listed Chinese companies."

Go deeper: Chinese investment in the U.S. has dropped nearly 90% since Trump took office

Go deeper

Biden plans to ask public to wear masks for first 100 days in office

Joe Biden. Photo: Mark Makela/Gettu Images

President-elect Joe Biden and Vice President-elect Kamala Harris sat down with CNN on Thursday for their first joint interview since the election.

The big picture: In the hour-long segment, the twosome laid out plans for responding to the pandemic, jump-starting the economy and managing the transition of power, among other priorities.

The quick FCC fix that would get more students online

Illustration: Sarah Grillo/Axios

As the pandemic forces students out of school, broadband deployment programs aren't going to move fast enough to help families in immediate need of better internet access. But Democrats at the Federal Communications Commission say the incoming Biden administration could put a dent in that digital divide with one fast policy change.

State of play: An existing FCC program known as E-rate provides up to $4 billion for broadband at schools, but Republican FCC chairman Ajit Pai has resisted modifying the program during the pandemic to provide help connecting students at home.

Dion Rabouin, author of Markets
54 mins ago - Politics & Policy

America's hidden depression

Biden introduces his pick for Treasury secretary, Janet Yellen, on Dec. 1. Photo: Alex Wong/Getty Images

President-elect Biden faces a fragile recovery that could easily fall apart, as the economy remains in worse shape than most people think.

Why it matters: There is a recovery happening. But it's helping some people immensely and others not at all. And it's that second part that poses a massive risk to the Biden-Harris administration's chance of success.

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