Yields have declined across developed markets worldwide. Today, it is impossible for fixed-income investors to achieve the same returns they did fifteen years ago without rethinking their approach. This reality has forced many conservative investors into riskier and riskier asset classes in a race to find new sources of yield. KraneShares thinks China may be a more attractive alternative.
Key Takeaways:
- China’s bond market may be poised to deliver high yields in a yield-deprived global environment.
- The offshore and onshore bond markets are now equally accessible to international investors.
- China’s currency has been trending towards stability, making RMB-denominated cash flows increasingly attractive.
- Chinese bonds are being rapidly included into dominant global bond benchmarks. With yield and return potential higher than in many other fixed income markets, investors could underperform these benchmarks without a meaningful allocation to China’s bond market. READ MORE
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