Investors bet against Chinese debt market

$18bn renminbi debt sold in March

Foreign investors sold down $18bn in renminbi-denominated debt in March, as they bet against the region’s economic outlook in favour of attractive US yields, according to a Financial Times report.

Sales in the asset class climbed to Rmb113bn, or $17.6bn, over the month, bringing total outflows over the past two months to Rmb193bn. As central banks across the west began to raise interest rates, and bond buyers returned to market driving prices back up and rates back down, investors opted for more attractive yields and fled Chinese bond markets, typically a reliable source of fixed-income returns during periods of western quantitative easing. China is  currently attempting to contain economic turbulence triggered by lockdowns implemented to curb rising cases of Covid-19. "Thes...