Foreign investors step up purchases of Chinese government bonds

HONG KONG -- Foreign investors have added to their holdings in China's domestic bond market for a fifth month in a row, seeking to profit from deflationary pressures in Asia's largest economy.

Net purchases of yuan-denominated government bonds by foreign investors hit 203 billion yuan ($28.2 billion) in January, according to official data published on Monday. It was the fourth-highest monthly inflow since the July 2017 opening of Bond Connect, which enables offshore investors to buy onshore China bonds. The third-biggest inflow came in November.