Foreign investors saw a net increase of $41.6 billion in their holdings of China's domestic bonds in the first quarter of 2024, official data showed on Thursday.

This figure is notably higher than the total foreign investors' holding of net increase of $23 billion registered in 2023.

"Recently, overseas institutions' investment in domestic bonds has increased significantly," Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, told a press conference.

By the end of March, more than 1,100 overseas institutions from over 70 countries and regions entered the domestic bond market. Their bond holdings have exceeded $570 billion, accounting for around 2.6 percent of the total domestic bonds in custody, up 0.2 percentage point from the end of last year.

Overseas investment in the domestic bond market sustains reasonable structure and stable returns, Wang said. Overseas central banks and financial institutions have increased their investments in medium- to long-term bonds such as treasury bonds.

Looking forward, Wang expects overseas institutions' investment in domestic bonds to sustain a steady growth momentum backed by a sound macroeconomic environment, a stable renminbi exchange rate, and an increase in the use of renminbi in global cross-border transactions.