Free Trial

Global Investors Chase Yuan Bonds as Safe-haven Assets: Herald

CHINA PRESS
MNI (Singapore)

Foreign investors still favor Chinese yuan bonds even as the Federal Reserve accelerated tapering and potential rate hikes, as foreign holdings of yuan bonds rose CNY78 billion in December to total CNY3.68 trillion by the end of 2021, the 21st Century Business Herald reported citing data by China Central Depository & Clearing. The Fed’s tightening ahead of schedule may increase the volatility of the global financial market, which drives global investors to increase asset diversification with yuan bonds becoming their first choice for safe-haven investment due to its low correlation with the global financial market, the newspaper said. The appreciation of the yuan supported by China’s robust exports also attracted investors, the newspaper added.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.