(Yicai Global) April 8 -- USD575 billion of non-resident capital may flow into China this year, an 18.6 percent increase over last year, according to the US-based Institute of International Finance.

China will continue to act as a key catch basin for the international funds going into emerging markets, the IIF said in a new report. It expects the total of such funds to gain more than 10 percent to USD1.26 trillion from last year's USD1.14 trillion.

China will see about USD70 billion in net foreign direct investment a year in 2019 and 2020, after large inflows into the bond market over the past two years. The Bloomberg Barclays Global Aggregate Index began a phased addition of Chinese securities on April 1, so fixed-income capital streams will grow sustainably, the IIF said.

The nation's stock markets will attract net inflows of USD105 billion and USD111 billion this year and next, and the net capital influx will reach USD50 billion and USD110 billion this year and next as the yuan exchange rate gradually steadies, the report added.

The IIF is a global financial sector association that banks in major industrialized countries formed in 1983 to grapple with the international debt crisis of the time. The institute's capital-flow tools track more than 20 major emerging markets, including China, Brazil, India and Turkey, and it publishes the actual flow data of their stocks and bonds.

Editor: Ben Armour