China Onshore & Offshore Bond Market Opportunities
- To optimise a recovering China economy, consider the potential of fixed income alongside equities
- China’s bond markets currently present compelling income and risk diversification opportunities.
With rates staying low for longer and inflation looming, China bonds continue to offer vast potential, particularly given the increased accessibility for international investors amid continuous market opening.
The different segments of China bonds come with distinct characteristics. In particular, onshore China bonds exhibit a lower correlation with global aggregate and developed market bonds, thereby presenting relatively attractive risk-adjusted return opportunities, alongside diversification potential.
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