China Emerges as Safe-Haven Amid Global Economic Uncertainty

Friendly policies and the world’s deepest and most liquid capital markets have long attracted global investors to China. Amid geopolitical turmoil and concern about debt, investors are increasingly turning to Chinese government bonds, which are delivering good returns compared to U.S. Treasuries. The yield on the benchmark 10-year Chinese government bond currently sits below 1.7%, significantly lower than the 4.8% offered by the 10-year U.S. Treasury note, making them a safe-haven asset in the eyes of bond investors. China’s investments in social stability are now bearing fruit, with Louis-Vincent Gave, the founding partner and CEO of Hong Kong-based financial services…