Should you invest in China's bond market?

FIXED INCOME

Geoffrey Lunt, investment director of Asian currencies at HSBC Global Asset Management, outlines the benefits of an allocation to renminbi bonds.

China’s interest rate cut has garnered a great deal of attention from the global press. Commentators have cited it as evidence that the Chinese economy is slowing down more quickly than expected and with the ongoing difficulties in the eurozone, there are now greater risks to the global growth outlook. The Chinese authorities are well aware of how interconnected the world has become. However, the People’s Bank of China made another announcement at the same time which, while buried in the fine print of the many stories of China’s economic demise, may turn out to be far more important to t...