国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Markets

Investors turning to Chinese bonds for better yields

(Agencies) Updated: 2014-10-25 08:37

Global investors are helping drive China's biggest bond rally since 2008, drawn by the widest yield advantage over US Treasury securities among similarly rated nations as the authorities grant increased access to domestic markets.

Foreign holdings of local notes surged 59 percent this year, pushing the Bank of America Merrill Lynch China Broad Market index of the nation's publicly traded sovereign and corporate debt to climb 8 percent, the most in six years.

The yield on two-year government securities is 312 basis points higher than that of Treasuries, the biggest gap among nations graded Aa3 by Moody's Investors Service.

China has been easing restrictions on the flow of capital from world financial hubs to push greater global use of the yuan. Quotas totaling 640 billion yuan ($104 billion) have been granted to invest offshore yuan in domestic securities and a trading link between the Hong Kong and Shanghai stock markets is set to begin soon.

Premier Li Keqiang has called for lower financing costs to support small businesses and prevent any systemic risks, boosting bonds.

"China's government notes offer the biggest bond-market opportunity in the world," Jan Dehn, London-based head of research at Ashmore Group Plc, which oversees $71.3 billion of emerging-market assets, said in an interview in Singapore this week.

"They have zero correlation with the Treasury market. Interest rates in China are a function of growth and inflation and monetary policy in China."

The People's Bank of China, the central bank, has cut reserve requirement ratios for some lenders and provided liquidity to selected banks to encourage lending and control any fallout from rising debt, which Standard Chartered estimated to be 251 percent of gross domestic product as of June.

Overseas entities have increased their bond positions for nine consecutive months, with their holdings rising 6.7 percent in September to 634.14 billion yuan - the biggest gain since March, according to PBOC data.

Two-year Chinese government notes yielded 3.51 percent on Thursday while consumer prices rose only 1.6 percent in September from a year earlier, the slowest pace since January 2010. Yields on similar-maturity sovereign bonds in Chile were 3.22 percent, and in South Korea 2.15 percent on the same day, which have the same Moody's rating as China's, while that on US Treasuries was 0.37 percent.

The yuan climbed to 6.1172 per dollar on Wednesday, the strongest level since March. The yuan's Sharpe ratio, which measures returns adjusted for price swings, is 4.2 so far in the second half, second only to Argentina's peso. The Chinese currency has trimmed its loss for the year to 1.1 percent.

"The low volatility of the yuan and high yields are among the main reasons to invest in onshore yuan bonds," said Ken Hu, Hong Kong-based chief investment officer for Asia-Pacific fixed income at Invesco Ltd, which had $812 billion under management globally at the end of August.

China has allowed 166 overseas institutions to trade on the interbank bond market, and 81 qualified foreign institutional investors obtained licenses to buy domestic securities using the local currency as of August, according to a transcript of Monday comments from PBOC Deputy Governor Hu Xiaolian posted on the monetary authority's website.

Investors turning to Chinese bonds for better yields

Investors turning to Chinese bonds for better yields

Govt bond yields fall most in one month on stimulus bets  China treasurybond futuresclose higher Monday

Hot Topics

Editor's Picks
...
...
离岛区| 长岛县| 砀山县| 永新县| 寿宁县| 新巴尔虎左旗| 天柱县| 荔浦县| 监利县| 金山区| 张家口市| 黔西| 澄迈县| 嫩江县| 布尔津县| 普兰县| 都昌县| 孟村| 公安县| 固阳县| 海南省| 桦川县| 布拖县| 建德市| 文山县| 肇州县| 华宁县| 阜城县| 赤水市| 邯郸市| 宜昌市| 林芝县| 西乌珠穆沁旗| 隆德县| 蚌埠市| 江油市| 客服| 栖霞市| 白水县| 正蓝旗| 天长市|