The country’s junk dollar bonds, mostly issued by struggling developers, have fallen more than 12% in the period.
Among China’s investment-grade cohort, “we prefer the China BBB tech sector such as Weibo, Meituan, and Xiaomi, which have solid fundamentals with good cash flow,” said Chris Zhou, a portfolio manager for Ping An of China Asset Management (Hong Kong) Co. The government’s stimulus measures will give the securities a further boost, with an overall shortage of supply for offshore notes a key reason to remain optimistic on gains, he added.
This article was provided by Bloomberg News.