Weak RMB present opportunities for bond investors

With 140.26 tn renminbi (~ $19.7 tn) China has the world’s second-largest bond market. Market liberalisation, improved liquidity and its inclusion in global bond indices have increased foreign participation in China’s bond market over recent years. In a recent insight, Nikko Asset Management explains the breakdown of the market and showcases the investment opportunities it brings.

The Japanese asset manager argues that historically, this asset class has offered relatively favourable risk-adjusted returns, lower correlation to traditional asset classes and hence offers a level of diversification.

“With the renminbi going through a weak phase, the current market environment could present opportunities for investors with a long-term timeframe,” writes Ian Chong, Senior Portfolio Manager at Nikko AM.

Read the full insight at emea.nikkoam.com