Comparative Export Advantage of China's Industrial Sector and Cross-Border Equity Fund Allocation of Foreign Investors
In the process of building a"dual circulation"development pattern,foreign trade and financial opening play a crucial role.The overall development of foreign trade can facilitate promote capital inflow.Consequently,what impact will structural changes in the proportion of exports across various industries have on a country's foreign trade?Based on the allocation weight data of foreign equity funds to China's industrial industries and the proportion of export de-livery value of China's industrial industries from January 2007 to August 2021,this paper explores the impact of changes in the export comparative advantage of China's industrial sectors on the allocation of cross-border equity funds by foreign investors.The study finds that with the enhancement of the comparative advantage of exports in a particular industrial sector,it will influ-ence investors'investment income expectations and industry focus,prompting foreign investors to increase the allocation weight of cross-border equity funds in this industry.The development of China's financial market and the improvement of the legal en-vironment are expected to mitigate financial frictions and attract foreign investors to allocate cross-border equity funds more ef-fectively.However,in the short term,rising global financial risks will hinder cross-border investment by foreign investors.As a result,they may increase their allocation to cross-border equity funds in China,primarily driven by arbitrage motives.This paper provides a new perspective and empirical evidence for the study of the driving factors of cross-border capital flows,refines the research on the impact of foreign trade development on cross-border capital flows,and enriches the research on the allocation of cross-border equity funds in China's stock market.
Cross-Border Capital FlowsEquity FundsIndustrial Sector ExportsComparative Advantage
NETL
NSTL
万方数据
