MAM Funds' Martin Gray is eyeing developed market government bonds with a view to reinvesting in the asset class, after taking profits over the summer.
China should attack the Japanese bond markets and cause a full-scale funding crisis, unless the latter nation reverses a decision to nationalise the Senkaku/Diaoyu islands, a senior advisor to the Chinese government said.
Markets were subdued in afternoon trading as fears over China, coupled with instability in the Middle East, weighed on investor sentiment.
Baring Asset Management is to launch a China Bond fund providing investors with exposure to the country's previously restricted fixed interest markets, as demand for new ways to play the Chinese growth story continues to build.
Fears Chinese government's stimulus plans are not enough leave managers waiting on the sidelines.
Ex-GAM manager Mansfield Mok has revamped his investment strategy for the launch of EFG Asset Management's New Capital China Equity fund.