Exclusive: Forex Regulator Says Volatility in Foreign Securities Investment in China ‘Normal and Controllable’

Recent volatility in overseas investment in China’s capital market is “normal and controllable,” an official with the foreign-exchange regulator told Caixin, after foreign investors offloaded securities in the first quarter amid a surge in Covid-19 outbreaks and the Russia-Ukraine war.

Overseas institutions reduced their holdings of Chinese bonds in February by 67 billion yuan ($10.5 billion), the first decline since November 2018, official data show, while net sales of Chinese mainland-listed shares through the Hong Kong Stock Connect program in March amounted to 45.1 billion yuan, the largest outflow since March 2020, according to data compiled by East Money Information Co. Ltd.