DWS CEO highlights recent robust performance of Chinese govt bonds

Renminbi assets are becoming increasingly attractive, underpinned by China's strong growth prospects and the rapid development of future-oriented industries, said Stefan Hoops, CEO of DWS — Deutsche Bank's asset management arm.

The recently introduced 15th Five-Year Plan (2026-30) places broad emphasis not only on domestic consumption and self-reliance, but also on a wide range of emerging industries.

"What we find impressive about the 15th Five-Year Plan is the breadth of industries in focus and the forward-looking composition of growth," Hoops said in a recent interview with China Daily.

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China has already made breakthroughs in areas such as artificial intelligence and is stepping up investment in advanced manufacturing, with innovations spanning medical devices and consumer technology. He added that part of the reason why foreign institutional investors are bullish on China is that the country offers not only AI capabilities — both software and hardware — but also a vast ecosystem of industries poised to benefit from increasing AI adoption.

Beyond growth dynamics, the rising global role of the Chinese currency is further boosting the appeal of RMB assets. Hoops pointed to a structural shift in trade invoicing: whereas the vast majority of Chinese exporter invoices were denominated in US dollars five years ago, a growing share is now denominated in RMB, driving greater demand for yuan-denominated assets.

He also highlighted the recent robust performance of Chinese government bonds, which have acted as a safe haven amid global uncertainty. Thanks in part to a more stable energy supply, inflationary pressures in China are expected to be more contained than in other major economies, supporting bond market resilience.

DWS has partnered with CSI Indexes for more than 15 years and, last year, became the first Western asset manager to launch Europe's first ETF tracking CSI A500 Index, offering overseas investors new access to Chinese equities. "We are telling people that if they want to participate in global growth, a lot of that growth is coming from China," Hoops said.

Stefan Hoops

He added that while China was once primarily known for manufacturing and exports, the past decade has seen a surge in innovation and technological advancement. During a business trip to Beijing last week, he said, "It's always fun and inspiring to walk around, speak to people and take new ideas home to Germany."

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At the policy level, China's leadership has reaffirmed its commitment to expanding high-standard opening-up and two-way investment cooperation. Meanwhile, Europe is becoming an increasingly attractive destination for Chinese capital, with DWS serving as a key gateway.

Hoops said the region's appeal is driven by several factors: stronger integration through cross-market initiatives and new trade agreements, deeper connectivity with China, the potential for AI to enhance efficiency in traditional industries, and Germany's large-scale infrastructure push alongside increased fiscal spending and broader structural reforms across Europe.

Together, these factors are creating substantial investment opportunities for investors worldwide, especially those from China, he said.

Contact the writers at jiangxueqing@chinadaily.com.cn