Three global indices are considering including China’s onshore bonds on their indices, which has the potential for strong capital inflows.
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Three global indices are considering including China’s onshore bonds on their indices, which has the potential for strong capital inflows.
The enormous domestic bond market is “more liquid than people might expect”, said Robert Simpson, portfolio manager at Insight Investment, which is about to become one of the first foreign firms to invest through the newly-opened bond channel.
Fund Selector Asia compares two China onshore funds, the China Merchants Antai Bond Fund and the UBS SDIC Stable Income Fund.
Onshore bond defaults controlled by Chinese authorities are welcome in principle, but in practice it is still unclear how the default process will work, according to Fidelity International.
Part of the Mark Allen Group.