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Global Funds Hunt Bargains in China’s Battered Bond Market

  • China government bonds yields ‘very attractive’: Pictet
  • AllianceBernstein and Aberdeen have bought China onshore bonds
Investors sit and stand at a trading terminal near an electronic stock board at a securities brokerage in Shanghai, China.
Photographer: Qilai Shen/Bloomberg
Updated on

China’s biggest bond selloff in four years has left many securities in the $10 trillion market looking attractive to global funds including Aberdeen Standard Investments, Pictet Asset Management and AllianceBernstein LP.

Bargain hunting by such investors could add to speculation that the worst of the rout, which started in October, is drawing to a close. Five-year government bonds have bounced back in the past week, after a selloff that has still left the yield up 94 basis points this year -- the most since 2013 -- at 3.8 percent.