As the Sino-US trade war intensifies and exacerbates uncertainty, Asian bonds, including Chinese paper, are generally becoming more attractive to international investors.
“My bias would be to buy China offshore debt on the expectation that a favorable trade deal outcome should cause spreads to tighten,” said Peter Sengelmann, chief investment officer of US investment management and financial planning firm Thun Financial.
International investor demand for Chinese offshore bonds is likely to continue, since many investors want to hedge against the impact of the trade war on the US economy.
“Overall, we prefer bonds to stocks. Equities are much more sensitive and higher risk...