BlackRock is bullish on China's domestic bond market. Here's why

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China's massive onshore bond market offers investors a level of returns that may be hard to find elsewhere in the current environment of low interest rates, said Neeraj Seth, BlackRock's head of Asian credit.

SINGAPORE — China's massive onshore bond market offers investors a level of returns that may be hard to find elsewhere in the current environment of low interest rates, a BlackRock portfolio manager said on Thursday.

Foreign investors remained under-invested in Chinese onshore bonds, accounting for just slightly over 2% of the $16 trillion market, noted Seth. He said foreign participation is set to increase asExplaining the case for Chinese bonds, Seth said the market offers many choices to build a portfolio that is both diversified and resilient — two important attributes that investors typically seek.

 

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Well let's be honest... China's bond market is, at least from what is made public, more of a free market then in the US. I don't see the CCP 'buying' (printing) trillions to maintain unattractively low yields and unrealistically cheap debt. Who would have thought.

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