CBON - China Bonds Are Still Too Big To Ignore

2024-05-30 08:45:00 ET

Summary

• As China navigates a bumpy economic recovery and investor sentiment appears to be near all-time lows, we wanted to revisit the investment case for continued exposure, specifically from a fixed income perspective.
• From a yield perspective, the case for China bonds has undoubtedly become less compelling following a decline of about 100 bps since their recent high in 2020.
• For bond investors, the yield decline over the past few years has provided significant support to returns while most global markets counterparts have struggled.

Despite recent headwinds, China's vast and diverse bond market is too big to exclude from long-term focused portfolios.

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