China attracted fresh foreign capital in May despite mounting geopolitical tensions and broad outflows from emerging markets, highlighting investor confidence in the country's economic resilience and policy support.
Chinese equities recorded net inflows of $8.1 billion during the month, while non-resident investors withdrew a net $26.6 billion from emerging market stocks and bonds, according to data released by the Institute of International Finance on Wednesday.
Although the conflict in the Middle East has affected global energy markets, China's dependence on Gulf crude oil is relatively limited.
China's relatively low reliance on Gulf oil imports and the resilience of its industrial base have helped shield the economy from external shocks.
At the same time, the country benefits from a supportive policy environment, said Desmond Kuang, China chief investment officer at HSBC Private Bank and Premier Wealth.
