China bonds to lure more foreign buyers

Foreign appetite for onshore debt will continue to remain resilient with different market cycles appearing to have little to no effect on China’s ability to attract investors, according to Aberdeen Standard Investments.

Investors should continue to grow allocations to Chinese onshore bonds as part of any multi-asset, or global asset, portfolio as a good way to diversify risk.

“We are upbeat about the stability and strength of the RMB because of a recovery in Chinese exports and prudent central bank policy,” explained Edmund Goh, investment director, Asian fixed income at Aberdeen Standard Investments.

While Goh said he doesn’t have a particular preference for short- or longer-term debt as part of local currency allocation, he would opt for investment grade debt in the corporate and quasi-government space. “We plan to increase our investments in those investment grade credits that we...

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