Foreign investors made record net purchases of Chinese bonds traded through the country’s Bond Connect programme in July, boosted by record yield premiums over U.S. debt.

Net inflows into Chinese bonds through Bond Connect, which gives global investors access to the country’s onshore bond market through Hong Kong, totalled 75.5 billion yuan ($10.8 billion) in July, Bond Connect Co. said in a statement dated Friday.

Analysts say widening spreads reflect the differing approaches of the U.S. and Chinese central banks. The Federal Reserve is facing dimming hopes for a quick economic rebound, while China is steadily recovering from the coronavirus crisis, allowing the People’s Bank of China (PBOC) to switch from emergency mode to focus more on financial risks and curtailing speculation.

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