Foreign investors are increasing purchases of Chinese interbank debt as rising mainland yields and favourable currency conversion rates make the market attractive. Holdings of negotiable certificates of deposit (NCDs) hit a record CNY1.14tr (USD158bn) at February’s end, marking the third straight month of buying. The yield on one-year NCDs has risen 40 basis points to 2%, while dollar investors can earn 4.8% with hedging—higher than the 4% return on US Treasuries. The shift signals renewed capital inflows into China, supporting the yuan amid ongoing Sino-US trade tensions. Investors are drawn to China’s low correlation with global markets and potential US rate cuts, analysts said.