Asian Credit Monitor: China’s Onshore Bonds (Part I: The Normandy)

Asian Credit Monitor: China’s Onshore Bonds (Part I: The Normandy)

in Thematic & Strategy

Bond Connect will help international investors gain a better foothold in China's onshore bond market. We believe this is the right time for international investors to start landing onshore in China, hence the title of our report. In this 2-part report, we highlighted the landscape of China's onshore bond universe. Part I focuses on the access to China's onshore bonds, the motivations, and the value proposition, followed by Part II on risks related to the onshore bonds.

Benefits of investing onshore will come from diversification, yield pick-up, less volatility, and, to a lesser extent, a profit repatriation by offshore Chinese companies back to China. We expect the onshore yield curve to continue to flatten and prefer the 3Y to 5Y tenor buckets. We advise against adding "AA+" and "AA" o...

Read more: https://www.smartkarma.com/insights/asian-credit-monitor-china-s-onshore-bonds-part-i-the-normandy