Homepage / Asia / China's bond market to surpass Japan as world's second largest in five years: UBS
Bewertungen zu Vulkanvegas Lesen Sie Kundenbewertungen zu vulkanvegas com 3 von 5 小柳商事株式会 Mostbet Türkiye mobil uygulamasını indi What to anticipate in VDR Providers Best Country To get yourself a Wife: Asia, Europe & Latin America Technology and Asylum Procedures Business Process and Digitalization How to begin Your Blog With no Investment Software For Modern Business Setting Up the Electronic Data Areas Legal Support and Advice Intended for Small Businesses The very best Virtual VDR Providers 9 Tips for Working With Teams in Different Timezones Korean Brides -mail Order Brides From Southern Korea Choosing a Data Place Antivirus Solutions — What to Look For within a Good Anti-virus Solution Best Alternatives of VPN Software New Step by Step Roadmap for Marijuana News Relationship With A Russian Mail Order Bride: Can It Develop Suitable Family? Steve Munger: These Primary Guidelines Made Me Effective In Life With Warren Buffett, Thought about All Three Guide To Choosing The Right Mailbox Order Star of the event Web Site In 2023 Few Wins $3 Million In Pennsylvania Lotto Scratcher, Strategies Trip Privately owned Internet Access Avast Review Powerful Deal Achievement Top Rated Free VPN Services Adaware Review – Is Adaware Review Right For You? Large 15 Best Countries To find a Spouse In 2023 Online dating services Reviews Ideal Legit Snail mail Order Bride-to-be Sites To Decide On In 2023 & Feedback Thailänder Brides Pleasant Thai Mailbox Order Wedding brides To Marry Thailänder Brides Get A Thailand Deliver Order Bride The principal Expenses Ukrainian Mail Order Spouse Cost Includes The Nations Just where Girls Have One Of The Best Lives, In Chart Romancescout: Your Information To On-line Relationship Evaluations, Recommendations Tes Ship Order Bride-to-be Discover A Overseas Spouse Across the internet Free With Jetbride Com Powerful Interracial Marriages Exquisite Interracial Lovers Exactly what the Best Online dating Websites? Very best Dating Web page Reviews – Find Your web Soul Mate Ways to Create Online dating sites Profiles Long Relationship Suggestions Long Relationship Suggestions How to begin a Successful Wife Search Getting married to a Russian Child The right way to Meet Delightful Ladies Around the World To recognize Know About Ukrainian Single Girls Dating The Different Types of Sugar Daddies The key benefits of Dating a Latina Top 5 International Dating Sites Russian Women Seeking Men Overseas Cookware Interracial Lovers and the Backlash Against All of them Getting the Marriage License and Wedding ceremony Done Correct How to pick the Best Web based Marriage Company Flirting Tips For Timid People Delightful Interracial Lovers Crucial Russian Females Dating Suggestions for Men Steps to create the Most of Dating An individual From Another Country Web based Top five Romantic Honeymoon Destinations Just what Soulmate? Web based Relationships Suggestions The Challenges of Dating An individual From A further Country Setting Expectations just for Online Sugar Daddy Arrangements Marital relationship License and Ceremony Why Are Latinas Heated? Getting Foreign Bride-to-be Tips on how to Propose — What’s the Best Way to Say “I Do”? Is usually Your Long Distance Marriage Moving Too quickly? Dating Etiquette — The Modern Rules of Seeing A Quick Guide to the Use of NLP in Chatbots Building Trust in Human relationships Les mariages interracials les plus réussis sont ceux basés sur l’amour & le respect Browsing through Cultural Differences in Asian Human relationships How you can Have a cheerful Marriage The right way to Fix a Relationship With out Hurting Your companion How to Spice Up a lengthy Distance Relationship The main advantages of Online Dating What is the Best Female Race to Marry? Western european Women Stereotypes Why Asian Girls Like Bright white Guys How to Succeed in On the web Relationships Top 5 Online Connections Tips Top 5 Online Connections Tips Leading Countries With Best Foreign Brides Powerful Interracial Relationships Asian Wedding Icon Meanings Where to Find a Deliver Order Star of the wedding Wedding ceremony Traditions in Ukraine For what reason Asian Girls Like Light Guys Asian Brides Via the internet Tips on how to Propose – What’s the simplest way to Say “I Do”? 5 Latina Wedding party Traditions Will possibly not Have Dreamed about When should you Stop Online dating Other People in Online Dating Latina Relationship Interaction Styles How to Find a Bride On line Good Interracial Relationships Oriental Wedding Practices Top five Online Relationships Tips The right way to Meet Overseas Woman and Create a Longer Distance Romantic relationship Where to Meet Latina Mail Buy Brides Where to get a Hot Asian Star of the event

Asia

China's bond market to surpass Japan as world's second largest in five years: UBS

China’s bond market will double in size from the current $9 trillion over the next five years, overtaking Japan’s to become the world’s second largest behind the United States’, UBS Asset Management said in a report.

Underpinning that growth is a law passed in 2015 to prohibit local provinces and cities from borrowing from banks. Instead, they were required to borrow in the public debt markets as Chinese authorities sought to transfer some risks away from banks.

“We believe more and more Chinese entities will raise capital in the onshore bond market, given that the domestic market is already large and liquid enough to attract new investors,” the Swiss fund house wrote in its report.

It predicted that China’s local government bond market will grow to more than $3 trillion in the next three years from the current $1 trillion — just about on par with U.S. municipal debt size of $3.8 trillion.

Such growth prospects, coupled with the country’s financial reforms, make China’s debt market an attractive investment, UBS said. Those with higher credit risk may select state-owned enterprises, local government bonds or issuance by the five largest banks, it added.

“In the aftermath of the global financial crisis, unorthodox monetary policy led to asset price inflation in all traditional asset classes. This in turn has created yield compression, with the amount of negative-yielding sovereign debt globally estimated at $8.6 trillion, according to Fitch Ratings (March 2017),” according to the UBS report.

Chinese bonds, on the other hand, offer “attractive yields” on both a nominal and real basis, UBS said, adding that “there remains the potential for capital gains should bond yields move lower from their current levels.” The fund house also noted Chinese bonds’ “defensive characteristics” (investment grade and a from net creditor country) which make them “attractive in a portfolio context.”

China’s rising debt and moderating growth have often been cited as a key risk to global markets as the country’s economic influence widens. Moody’s last month downgraded the country’s rating from A1 to Aa3 and flagged that its economy-wide debt levels were expected to increase further in the years ahead. Reforms were only likely to slow China’s growth rate, the agency said.

Yet while UBS may see opportunity in the bond market, China’s own government bonds may be signalling problems with the wider economy.

In a note this week, PIMCO’s emerging markets portfolio manager Isaac Meng noted that the 10-year Chinese government bond yield sank below the one-year yield — which happened only once before, on June 2013, amid “a severe liquidity crunch in the interbank market.”

“The [People’s Bank of China] has clearly tightened monetary conditions, pressuring banks to curb corporate and mortgage lending while passing through higher lending rates to borrowers… On the margin, China’s monetary tightening and financial deleveraging will be a headwind to a rebound in global manufacturing and reflation in commodities,” Meng wrote.

“A persistent wholesale funding squeeze and yield-curve inversion in a relatively opaque and interconnected financial system are signals of strain; they should be taken seriously by both policymakers and investors.”

Source: cnbc china
China's bond market to surpass Japan as world's second largest in five years: UBS

Comments are closed.