China

Chinese sovereign bonds are becoming almost as safe as US treasuries in the CDS market.

Dominique Strauss-Kahn, the head of the International Monetary Fund, has warned global currency disputes are a "real threat" to the economic recovery.

The manager of an AIM-listed China trust - which is held by Fidelity's Anthony Bolton, Baillie Gifford and Henderson - is under investigation by the US regulator.

ON ASIA

CHINA

Eclectica founder Hugh Hendry has initiated a substantial short position in Japanese credit, on expectations of a sharp correction in the Chinese growth story.

THE LEADER

ON ASSET ALLOCATION

Warren Buffett is expecting "large investment opportunities" to develop in China as the country continues its rapid expansion.

High valuations and a lack of corporate governance means China is the worst placed emerging market to deliver a return on capital, according to M&G's Matthew Vaight.