The $20 billion public pension fund plans to raise its alternative asset allocation from 20% to 24% by the end of this year, and to over 30% by end-2025, fueled by overseas investments.
Hong Kong is planning to add southbound trading under the current Bond Connect Scheme with mainland, providing onshore Chinese investors more diversified offshore exposure.
Amid global growth in fixed income ETFs, RMB bond index funds have shown rapid growth in the past three years. By the end of June 2020, there were 133 domestic bond index funds with a total value of ¥455.5 bn in China - 23 times greater than in 2018 - and 27 overseas-listed RMB bond ETFs with a total value of ¥53.6 bn, 99% of which comprised Chinese government bonds and policy bank bond ETFs.
A new Invesco study finds a lack of consensus around terminology among some of the challenges facing institutional investors implementing factor-investing in fixed income.
For the Year of the Rat, AsianInvestor offers some financial and economic predictions. In this instalment, we ask whether there will be any bond market shocks.
More than Rmb1 trillion of special-purpose bonds could hit the onshore market by October-end and offer a premium over the Chinese risk-free rate. But buyers beware.