By Mike Bird Close Mike Bird Updated June 17, 2020 5:54 am ET Even as relations between the U.S. and China deteriorate, threatening economic ties, there’s still a long-term opportunity for American investors in the country’s government bond market.
Very much unlike Japanese and German government bonds, however, none of the Chinese sovereign bond market trades in negative territory. Its 10-year government bonds offer a yield of 2.89%. And there are good reasons to expect them to provide returns in years to come for buy-and-hold investors. For one, China’s demographics are unusual for an upper-middle income country. A rising share of elderly citizens tends to depress economic growth, while high savings for retirement reduces interest rates. The central government seems averse to a sustained fiscal push to aid consumer demand.
There are a couple of important caveats to this argument. The first is the rapidly expanding supply of formal government debt itself: year-to-date Chinese local governments, which enjoy implicit support from Beijing, issued more than 1 trillion yuan in special bonds in May, a record amount. The other risk is big problems in China’s copious off-balance-sheet local government debt, forcing the sovereign to absorb it in some way.
sovereign bonds still paying out 4.2% to domestic investors.
धोखेबाज चीन के खिलाफ सख्त कार्रवाई हो। अक्साई चीन वापस लिया जाए। भारत अपना शक्ति प्रदर्शन करें।
Guess you guys read BoltonsBook
Stop supporting genocide in China.
班上作文第一的好孩子，就因為點補課費被老師逼上絕路，這種老師太可恨了
Полностью с вами с согласна
NOTHANKS
Когда мы узнаем правду?
I would recommend that anyone in the bond market stay very clear of the Chinese market
This week's riddle: Which stock performed the biggest short squeeze in the last 10 years? First 20 to answer correctly win a free subscription to our exclusive weekly stock pick service. Please provide e-mail to enter. stockmarket shortsell andrewleft
JOIN ME NOW Malaysia Life&Medical Insurance! Be Friend for Life ! 😊 Start with any1 you know in Malaysia, that plan for baby/already pregnant 14 weeks now 🙂 *Elderly Senior=high risk to COVID19 *BUY with ME now cover up to age 80/90/100 Together let's help ALL we care❤️
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »