Cavenagh Capital’s Lee Says Offshore Yuan Bonds Not Attractive

Lee Ka Shao, the Singapore-based chief investment officer at Cavenagh Capital, a hedge fund set up by former Morgan Stanley and DBS Holdings Ltd. managers, comments on Dim Sum bonds at a conference in Singapore.

“I’m not a buyer of Dim Sum bonds. If you’re using it as a shrewd way to bet on the currency, it’s the wrong way. You see a lot of the issuers are not good investment-grade issuers in the first place.

“The key for market participants like myself is the 3 percent annualized” appreciation of the yuan, he said. “Given that some stocks can rally 10 percent in one day, forget it. It’s not something I’m interested in.”

To contact the reporter on this story: Lilian Karunungan in Singapore at

To contact the editor responsible for this story: James Regan at

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