China Asset Management Launches First Offshore Yuan Bond Fund
The Hong Kong branch of China Asset Management has introduced its first offshore yuan bond fund, focusing on dim sum bonds due to favorable policy measures and low Chinese interest rates. This new fund aims at both domestic and global investors interested in diversifying away from the U.S. dollar.
China Asset Management (HK) has launched its inaugural offshore yuan bond fund, seeking to capitalize on the increasing interest in yuan-denominated assets. This launch aligns with Beijing's efforts to internationalize its currency and strengthen the yuan bond market.
The fund specifically targets dim sum bonds—yuan-denominated notes issued in Hong Kong. The demand for such investments has grown, with investors looking to diversify their portfolios and capitalize on attractive yields, especially amid geopolitical shifts impacting the U.S. dollar.
The People's Bank of China announced various supportive measures to boost the yuan bond market in Hong Kong. These efforts include the introduction of yuan-denominated government bond futures, aimed at enhancing the market's depth and liquidity, benefiting both domestic and international investors.
(With inputs from agencies.)
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