The FT reports that “a cluster of central banking investors has become major players on world equity markets.”<\/p>\n
The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which “could potentially contribute to overheated asset prices.” China\u2019s State Administration of Foreign Exchange has become \u201cthe world\u2019s largest public sector holder of equities\u201d, according to officials, and we suspect the Fed is close behind.<\/p>\n
Central banks around the world, including China\u2019s, have shifted decisively into investing in equities as low interest rates have hit their revenues, according to a global study of 400 public sector institutions.<\/p>\n
\u201cA cluster of central banking investors has become major players on world equity markets,\u201d says a report to be published this week by the Official Monetary and Financial Institutions Forum (Omfif), a central bank research and advisory group. The trend \u201ccould potentially contribute to overheated asset prices\u201d, it warns.<\/p>\n
The report, seen by the Financial Times, identifies $29.1tn in market investments, including gold, held by 400 public sector institutions in 162 countries.<\/p>\n
China\u2019s State Administration of Foreign Exchange has become \u201cthe world\u2019s largest public sector holder of equities\u201d, as the report argues is \u201cpartly strategic\u201d because it \u201ccounters the monopoly power of the dollar\u201d and reflects Beijing\u2019s global financial ambitions.<\/p>\n
In Europe, the Swiss and Danish central banks are among those investing in equities. The Swiss National Bank has an equity quota of about 15 per cent. Omfif quotes Thomas Jordan, SNB\u2019s chairman, as saying: \u201cWe are now invested in large, mid- and small-cap stocks in developed markets worldwide.\u201d The Danish central bank\u2019s equity portfolio was worth about $500m at the end of last year.<\/p><\/blockquote>\n
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<\/p>\n","protected":false},"excerpt":{"rendered":"
The FT reports that “a cluster of central banking investors has become major players on world equity markets.” The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which “could potentially contribute to overheated asset … Continue reading “Central Banks are buying stocks”<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,3],"tags":[9098,9094,9097,2055,9090,9096,9093,9095,9099,389],"class_list":["post-14221","post","type-post","status-publish","format-standard","hentry","category-business-and-finance","category-news","tag-asset-prices","tag-central-banks","tag-equity-markets","tag-financial-markets","tag-investments","tag-investors","tag-liquidity","tag-retirement-planning","tag-stock-bubble","tag-stocks"],"cc_featured_image_caption":{"caption_text":false,"source_text":false,"source_url":false},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/14221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14221"}],"version-history":[{"count":1,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/14221\/revisions"}],"predecessor-version":[{"id":14222,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/14221\/revisions\/14222"}],"wp:attachment":[{"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}