May 30, 2021
Global fixed income investors are looking back into Chinese bonds after a temporary pullback, targeting debt outside of sovereign debt to capture more attractive yields and returns. Investors can also examine China bond-related exchange traded funds to get exposure to this market.
Bonds issued by Chinese “policy banks,” which include public funds to areas such as trade, infrastructure, and agriculture, are attracting more attention, Nikkei Asia reports.
“Foreign investors are now comfortable with Chinese government bonds and are now creeping down the curve to policy bank bonds. It is an evolution of the risk appetite,” Jason Pang, a Hong Kong-based portfolio manager at J.P. Morgan Asset Management, told Nikkei Asia.
Foreign investors line up for China financial services play By JIANG XUEQING | China Daily | Updated: 2021-05-06 09:03 Share
DBS stake in Shenzhen rural bank signals rising confidence in new round of opening-up
Foreign financial institutions, or FFIs, are planning to increase investment in China s commercial banks or exploring new business opportunities in the country, as China has strengthened efforts to further open up its financial sector, industry experts said.
Singapore s DBS Group announced recently its subsidiary DBS Bank has received Singaporean and Chinese regulatory approvals to acquire a 13 percent stake in Shenzhen Rural Commercial Bank with 5.29 billion yuan ($815 million).
DBS Bank, a multinational banking and financial services corporation, will use funds owned by the bank to buy 1.35 billion new shares of Shenzhen Rural Commercial Bank, abbreviated as SZRCB, at a price of 3.91 yuan per share.