China Bond Bulls Unfazed as Growing Crackdowns Spook Markets
- Despite rout, bonds’ world-beating 2021 rally remains in place
- Chinese bonds backed by central bank ‘bazooka,’ Ashmore says
This article is for subscribers only.
While Chinese markets might look bleak at the moment, the biggest government bond selloff of 2021 has some investors salivating at a buying opportunity.
Risk aversion swept the country and spread globally this week after China cracked down on private-education firms. Although reassurance from state media on Wednesday helped stem a selloff in stocks, sentiment remains fragile. The same goes for bonds.