The MSCI China Index has soared 23% so far in 2025 thanks to tech innovation in the natMSCI on and President Xi Jinping’s push for economic expansion, while the S&P 500 Index has shed 3.5%. Chinese bond yields have also bounced off record low levels as bearish bets on the economy take a backseat.
Foreign investments into China’s onshore markets rose to a record high in February as DeepSeek’s technology breakthrough and doubts over US exceptionalism helped offset trade-led concern over local assets.
Inflows for Chinese securities investments jumped to a record high of US$228.1 billion ($303.9 billion) in February, as per data released by the State Administration of Foreign Exchange on Monday. After offsetting outbound flows, the net balance flipped to positive for the first time since September.
