May 14 2021, 6:09 AM
May 11 2021, 4:30 AM
May 14 2021, 6:09 AM
(Bloomberg) Chinese debt is back in favor with overseas investors.
(Bloomberg) Chinese debt is back in favor with overseas investors.
After the nationâs government bonds suffered their first outflow in two years in March, foreigners added 52 billion yuan ($8.1 billion) to their holdings in April, bringing the total to a record 2.1 trillion yuan, data compiled by ChinaBond show.
In a game-changing shift compared by some to the birth of the euro yuan-denominated debt has emerged as a refuge during this yearâs global bond rout. Investors looking for diversification have piled in, seeking its relatively high yields and low correlation to other markets. While that partially reversed in March, as rising U.S. yields dimmed Chinese bondsâ appeal, the quick turnaround has underscored the resilience of demand and Chinaâs growing clout since opening its fixed-income market.