Short-term notes find favour in post-crunch China

Chinese bond buyers favour short-term notes after yields spiked during the recent liquidity crunch.

Short-term notes find favour in post-crunch China
Chinese investors are taking advantage of the improved liquidity

The easing of China’s liquidity crunch is driving interest in short-term debt, as investors move to take advantage of an expected fall in yields and more active trading.

During last week, trading in short- and medium-term notes MTN started to rise, according to a report released by China Chengxin International, a domestic rating agency.

Yields for short- and medium-term notes moved up sharply during the liquidity crunch that started in early June,...

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