The overlooked Chinese sector offering up attractive yields

Following a strong showing in 2019, we expect Asia's fixed income markets to benefit from supportive investor sentiment as underlying economic growth in the region stabilises in 2020.

Developments that could shake up market sentiment this year include the US Presidential Elections, Brexit and ongoing trade-related disputes.  The coronavirus crisis has also prompted significant investor concern regarding Chinese demand in Q1 2020. Although these events will elevate volatility in financial markets, credit markets still look attractive as risk appetite is likely to be supported by global liquidity. A word of warning on China's future In particular, we expect Asian high yield bonds to benefit from a stronger technical environment as supply normalises after a heav...