Short-term notes find favour in post-crunch China

Chinese bond buyers favour short-term notes after yields spiked during the recent liquidity crunch.
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Chinese investors are taking advantage of the improved liquidity
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<div style="text-align: left;"> Chinese investors are taking advantage of the improved liquidity </div>

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, which means there is more room for a fall in yields of short- and medium-term notes, the China Chengxin report notes. Last week, as the central bank started open-market operations, the yield of one-year...

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