FXStreet reports that according to BNY Mellon, investors will exercise greater caution in light of recent volatility in China’s bond markets, tighter controls of technology companies and greater oversight on initial public offerings (IPOs), per 

“Wider capital account liberalization will likely continue in an asymmetric manner. Although foreign inflows are highly welcome, domestic outbound flows will continue to face some restrictions, particularly during times of stress (such as episodes in February and March at the height of the global pandemic).”

“In the near-term, given recent bond market gyrations in China, developments in the equity markets over IPOs, and increased oversight of technology and fintech companies, there probably needs to be a confidence-rebuilding exercise, with a more stable framework in sight to reassure market participants. On the external front, it remains to be seen whether Beijing will re-engage with Washington D.C. with the aim of lifting ownership restrictions on Chinese companies by US investors.”