Cross-border investment still ‘robust’ despite China’s growing controls: CICC
China International Capital Corporation (CICC) reports that mainland investors' demand for legitimate cross-border investments remains robust, despite Beijing's increased scrutiny and tightening controls on overseas portfolio investment and tax practices. CICC sees strong demand for global diversification and expects double-digit annual growth in its asset management scale, particularly with Chinese managers using Hong Kong as a base for global strategies.
Why it matters
This indicates that despite regulatory tightening, the underlying demand for international investment from China persists, highlighting the ongoing financial integration and the role of Hong Kong as a gateway for Chinese capital.
Beijing’s heightened scrutiny of overseas portfolio investment and tax practices has yet to significantly weaken mainland investors’ demand for legitimate cross-border investments, according to China International Capital Corporation (CICC).
The Beijing-headquartered investment bank is still seeing “robust” demand from its domestic clients, though the long-term effects of the policy tightening will need to be closely monitored, said Qiao Bo, head of investment products and solutions and a managing director at CICC, at an event in Hong Kong on Thursday.
“Global diversification becomes essential to lower overall portfolio volatility by including overseas assets,” Qiao added.
Beijing has launched a string of measures to tighten control over cross-border investment activities in recent weeks, including a clampdown on firms helping mainland clients to evade capital controls and invest in overseas stocks.
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