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US stocks see record $942 billion in foreign investment
Foreign investment in US equities has reached a historic high, with net purchases of US stocks and investment funds totaling $942 billion in the 12 months ending in July. This represents the largest volume recorded since the US Treasury began tracking such data in 1985.
In the second quarter alone, net purchases surged to $426 billion, a 62% increase from the previous year. This influx of capital coincided with a strong performance by the S&P 500, which rose approximately 20% over the 12-month period through July.
In contrast to the enthusiasm for equities, demand for US Treasury bonds has declined. Foreign net purchases of Treasuries dropped from $314 billion in the first quarter to $188 billion in the second quarter. Notably, China's holdings of US Treasuries have fallen to $618 billion, the lowest level since August 2008, as the country diversifies its assets into gold and other government securities.
In South Korea, retail investors have significantly increased their exposure to US markets. As of late July, South Korean holdings of US stocks approached $200 billion. Among the most popular recent purchases by these investors were short-term Treasury ETFs and semiconductor-related leveraged products.
Entities
China · Council on Foreign Relations · Korea Securities Depository · New York Stock Exchange · S&P 500 · South Korea · U.S. Department of the Treasury · US Treasury · Wall Street
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The S&P 500 index rose approximately 20% in the 12-month period ending in July. www.jnilbo.com · www.mononews.gr · www.newmoney.gr
- [○ 1 SOURCE] China's reported holdings of US Treasuries fell to $618 billion, the lowest level since August 2008. www.jnilbo.com
- [● 3 SOURCES] Foreign investors' net purchases of US stocks and investment fund shares reached $942 billion in the 12 months through July. www.jnilbo.com · www.mononews.gr · www.newmoney.gr
- [● 3 SOURCES] This level is the highest recorded in the 12-month period since the US Treasury began collecting such statistics in 1985. www.jnilbo.com · www.mononews.gr · www.newmoney.gr
- [○ 1 SOURCE] The iShares 0-3 Month Treasury Bond ETF (SGOV) was the most purchased security by South Korean investors between July 1 and July 22. www.womennews.co.kr
- [○ 1 SOURCE] South Korean retail investors' holdings of US stocks reached approximately $197.5 billion as of late July. www.womennews.co.kr
- [○ 1 SOURCE] Demand for US Treasury bonds from foreign investors has decreased, with net purchases falling from $314 billion in Q1 to $188 billion in Q2. www.jnilbo.com
- [● 3 SOURCES] Net purchases of US stocks and investment funds in the second quarter reached $426 billion, a 62% increase compared to the same period last year. www.jnilbo.com · www.mononews.gr · www.newmoney.gr