Rising appeal of China bonds has its limits

Foreign investors are buying more onshore Chinese debt, but currency worries remain a drag on the market.

Foreign buying of Chinese onshore bonds, principally government bonds, has risen sharply in the last two months thanks to the renminbi's more stable performance and the opening of Bond Connect on July 3.

But it's still at very low levels, given the $9 trillion-plus size of the market - and will remain so until a variety of functional shortcomings are addressed. In a two-part article, FinanceAsia's sister title AsianInvestor is examining some of these issues.

Foreign holdings of Chinese onshore government bonds expanded by 8.4% in July to Rmb486.8 billion $72 billion, after a 4.7% increase in June, China Central Depository and Clearing...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222