The search for diversification should lead global investors to boost their allocation to China bonds, according to State Street Global Advisors (SSGA).
The Thailand fund of funds will invest in UBS and Axa products.
Western Asset identifies three markets with attractive bond investment opportunities in Asia.
Despite defaults amid tightening liquidity conditions for Chinese property firms, there are opportunities in the onshore credit market.
China’s fixed income market offers defensive assets with attractive returns amid equity market volatility.
With leading indicators for China suggesting only a temporary economic slowdown, there is reason for optimism in terms of the fixed income and equity markets, according to Pictet Asset Management (Pictet AM).
The US asset manager is wary of risks among Chinese property developers and state-owned enterprises (SOEs).
Value equities continue to make sense and Asian equities offer attractive risk-reward returns, according to HSBC Asset Management (HSBC AM).
Foreign investors continue to allocate to onshore debt throughout market cycles, with investment grade bonds particularly appealing, according to Aberdeen Standard Investments (ASI).
For investors looking to enhance their portfolios, China’s relatively early recovery from the pandemic has accelerated the appeal of the combination of yield premium, diversification and macro exposure available in renminbi (RMB) bonds.