China reports a +14.9% y/y reading for July foreign direct investments
That's in yuan terms. And it dwarfs the +0.3% y/y reading recorded in June. To put the jump in perspective, that's the largest climb that we have seen so far this year. As the yuan continues to weaken, it is helping to add to the attractiveness that China offers - as long as economic growth remains sustainable.
By right, this should be supportive for Chinese equities but the Shanghai Composite remains 0.7% down as head into the close. In the bigger picture though, this will add some comfort to Chinese authorities who fear that cracking down on financial risks - via credit tightening - will impact growth and inadvertently push away investments.
