Opportunities in China’s onshore and offshore bond markets

While uncertainty remains over China’s macro environment and policy making, there will be tactical opportunities in China’s onshore and offshore bond markets, writes Eastspring Investments in a recent insight.

“Despite the recent volatility in the Chinese equity markets and the rout in the global bond markets, the yields on China’s onshore corporate bond market remain at historical lows,” writes Janet Lu, Head of Fixed Income. “This has helped to underpin the performance of China’s onshore corporate bond market.”

Lu further explains the local dynamics behind the market and how  investors can seize the unique opportunities in China’s bond markets, while fully appreciating the risks that reside.