A high number of popular American companies have been investing their money in the Chinese market on a large scale. The availability of a favorable business environment has helped Americans to invest their money into Chinese stocks and bonds in large chunks. However, there is not much investment made by Chinese people in the American market which can easily be seen from the statistics available related to it.
The flow of money is only one way and the Chinese people are not reciprocating on a similar note as Americans. A number of American giants invest billions in the Chinese market and on the other hand, the investment by China in the American market is not even close to that of American investment. Indexes such as the Bloomberg Barclays Global Aggregate Bond Index and the MSCI Emerging Markets Index have been increasing their weightings to China. It is due to the high demand for the world’s No. 2 economy in the global capital markets. One can click here to know the flourishing insurance companies in China due to high investment.
As per the data available from Morningstar Direct, only $5.4 million amount has been invested by the Chinese in the US stock market so far. However, the estimates from China International Capital Corp has highlighted that the weighting for the A-shares in the MSCI Emerging Markets Index stands at $22.7 billion. An investment worth $697 million of American money has been invested alone in Chinese companies like Alibaba, Tencent, Ping An Insurance and Chinese state-owned banks. However, it is high time for China to show a sign of faith by investing money in the US market to maintain a positive trade environment.