Fundamentals for high yield bonds are stronger than ever, but investors should be wary about the outlook for China’s property and financial sectors.

Fundamentals for high yield bonds are stronger than ever, but investors should be wary about the outlook for China’s property and financial sectors.
The strategy of a financial sector fund run by the firm for 12 years has been revised to address financial innovation.
China’s regulator has proposed converting equity in Chinese firms into shares listed on the Hong Kong bourse in order to raise management incentive in some state-owned firms and improve earnings, said Nicholas Yeo, head of equities for China and Hong Kong at Aberdeen Standard Investments.
The first half results reveal significant year-on-year weakness in China equities.
China beat market expectations with a 7% year-on-year growth for the second quarter. But in the second half, fund houses are concerned about the financial sector.
Part of the Mark Allen Group.