China Top Fund May Cut Corporate Bond Exposure as Defaults Surge
- Bosera's Wei Zhen says may focus on high-grade notes
- Wave of onshore debt defaults has prompted rise in yields
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China’s top fixed-income fund manager said she may cut holdings of onshore corporate notes after defaults surged in the world’s third-biggest debt market.
Rising credit risks may lead to a further correction in corporate bonds as there’s likely to be a wave of rating downgrades mid-year, said Wei Zhen, a fund manager at Bosera Asset Management Co. in Shenzhen. Wei oversees the Bosera Anfeng 18-Month Interval Bond Fund, which has returned 17 percent in the past year, ranking it first among all fixed-income funds tracked by research firm Howbuy.