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

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.

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