Time to revisit China sovereigns and policy bank bonds

Country is stronger and more resilient

Following a tumultuous 2020 marked by the Covid-19 pandemic, global growth in 2021 is expected to improve on the back of positive vaccine developments and continued government measures.

However, the pace of recovery is likely to be uneven among economies and fears of a resurgence of Covid-19 linger. It would be presumptuous to say that we are finally out of the woods. But there is a silver lining: China has emerged from the pandemic stronger and more resilient. In this article we will outline our case on why China's current macroeconomic backdrop of recovery presents a favourable opportunity to invest in China bonds - in particular China government bonds and China policy bank bonds. We will also discuss the attractiveness of these bonds. China's macroeconomic backdro...