China’s onshore bonds have made their debut on a leading bond index, firmly launching them onto the global arena. Our new paper provides an overview of an asset class that is moving to the mainstream.
China’s onshore bond opportunity set is significant and growing. Given the yield and diversification benefits Chinese bonds can offer investors, we believe they are fully deserving of a greater role in investors’ asset allocations. But certain complexities mean that specialist skills and experience are vital in this investment universe.
As we wrote earlier this year, we see China’s forthcoming inclusion to the Bloomberg Barclays Global Aggregate Index as a deserved milestone. The question on investors’ minds when considering Chinese bonds is moving from ‘if?’, to ‘when, how much and how?’.
The value of investments, and any income generated from them, can fall as well as rise.
Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.