Chinese fixed income: Is it worth the hassle?

Second-largest market in the world

With a market cap of around $15trn, the Chinese fixed income market is the second-largest in the world, right after the US bond market.

In Redington's internal EMD manager universe, 38% of the asset managers now have a dedicated research team based in Asia. Over the last few years, we have seen a significant increase in client demand for Chinese equity solutions. But when it comes to fixed income, interest in Chinese bond dedicated mandates has been muted. Is it because the asset class is not attractive enough? Or is it that European institutional investors are not yet familiar with the asset class? This year, our fixed income research team decided to explore the universe of Chinese bond funds for the first time to tr...