Gloom Over China Assets Is Spreading Beyond Battered Stocks
- Yuan to remain under pressure given poor China growth: Mizuho
- Abrdn underweight China bonds as yields are higher elsewhere
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Skepticism over Chinese assets is spreading beyond stocks, with investors expecting the yuan and government bonds to underperform in a year when the Federal Reserve’s dovish pivot is set to buoy emerging markets.
Bearish sentiment toward China has intensified as the latest data confirmed the world’s second largest economy remains in the doldrums. While the gloom adds impetus for the People’s Bank of China to lower interest rates, investors say the monetary authority has less room to cut than its major global peers, whose borrowing costs are now at multi-year highs.