BELGRADE, Jan. 8 (Xinhua) -- Global capital flows are undergoing a structural reorientation toward emerging markets, a shift that is reshaping the international investment landscape and reinforcing China's position as a key destination for long-term foreign capital, an expert told Xinhua recently.
Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management, explained that since the global financial crisis, international capital has become less concentrated in developed Western economies and increasingly diversified across emerging markets, particularly in Asia.
China, he said, has become one of the main beneficiaries of this long-term realignment.
According to Lo, traditional cross-border bank lending has gradually given way to capital-market-based financing, including international bond issuance and portfolio investment. As global investors rely more on market-based channels, China's continued opening and financial market development have strengthened its role within this evolving framework.
The shift in global capital flows also has broader monetary implications, Lo said. While the U.S. dollar remains the dominant global reserve currency, the composition of international reserves is expected to evolve. In this context, the renminbi's role is gradually expanding as China's economic weight and financial integration increase.
From a long-term investment perspective, he said China's growing appeal is closely linked to its ongoing economic transformation. Structural reforms aimed at improving efficiency and guiding the economy toward higher value-added activities are reshaping the country's growth model, providing a more solid foundation for sustainable development.
He noted that supportive fiscal and monetary policies have enhanced economic resilience and reinforced confidence in China's medium- and long-term prospects.
As a result, international investors are increasingly assessing China through a long-term lens, focusing on fundamentals rather than short-term fluctuations. While foreign capital remains selective, interest has broadened as investors gain greater clarity on policy direction and economic restructuring.
Looking ahead, Lo said foreign investment is expected to concentrate on areas aligned with China's development priorities. These include high-tech industries, advanced manufacturing, semiconductors, artificial intelligence, the digital economy, new energy sectors and pharmaceuticals.
Modern services, including finance, healthcare, business services and financial intermediation, are also becoming increasingly attractive, reflecting China's expanding domestic demand and rising service-sector sophistication.
For long-term capital, Lo said China's key attraction lies in the combination of a vast domestic market, expanding technological capabilities, and deepening integration into the global financial system. ■
