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Pimco Says China’s Interbank Bond Market a ‘Curiosity’ for Now

  • China needs the affirmation of being included in index: Spajic
  • Pimco bearish on the yuan and expects 5 percent depreciation

Pacific Investment Management Co. said it’s holding back on its investments in China’s interbank bonds for now and that issues including settlement still need to be sorted out in the market.

The world’s third-largest bond market, which China opened further to foreign investors in February, remains more of a “curiosity,” said Luke Spajic, head of portfolio management for emerging Asia, at a briefing in Hong Kong on Wednesday. “It’s a market that although it’s big, it’s basically a teenager masquerading as an adult.”