Slowing economic growth, along with trade and technology tensions with the US, have resulted in negative rhetoric regarding China’s economic outlook. We explore which countries are set to benefit from the geopolitical pressures, as well as assessing whether the negative sentiment on China is overdone.

What does this mean for fixed income investors?

Within China, policymakers are easing monetary policy, providing demand-side subsidies, and managing the downside in the property sector. This stimulus is likely to prevent systemic risks and create a relatively stable macro environment. Our positioning in China is reflective of this view, and we remain engaged with a long bias for CGBs. We also hold long rates positions across the ASEAN region, where we see the largest impact of deflationary forces coming from China. 

About the Bond Bulletin

Each week J.P. Morgan Asset Management's Global Fixed Income, Currency and Commodities group reviews key issues for bond investors through the lens of its common Fundamental, Quantitative Valuation and Technical (FQT) research framework.

Our common research language based on Fundamental, Quantitative Valuation and Technical analysis provides a framework for comparing research across fixed income sectors and allows for the global integration of investment ideas.



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