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