How does the Chinese bond market provide a unique diversification opportunity?

Chinese bond market – reasons to invest now

02 Jun 2020
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Chinese Treasury bonds are viewed as one of the strongest, biggest and most liquid segments of China's bond market. Denominated in CNY and negatively correlated to developed markets, these bonds provide a powerful diversification tool.

In 2019, Index providers Barclays Bloomberg and JP Morgan announced the country's bonds will be included in their global indices, this is likely to generate investments of almost USD 300 billion in the coming years.

UBS Asset management has created the UBS CNY China Government 1-10 Year ETF which delivers this key market exposure in an easy to access and cost-efficient wrapper. Read more on how China has opened up and further liberalized its capital markets to attract foreign investors, at On Track Magazine.