China Bond

China bond mutual funds and ETFs invest the majority of their assets... China bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of China. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Renminbi. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. There are three distinct types of Chinese bonds: Onshore, Foreign Currency, and Offshore. Of these, Onshore bonds (listed domestically and denominated in Renminbi) are the largest by issuance (over US$13 trillion). Investors can purchase these funds for income, capital growth, and to gain exposure to the Chinese economy. However, Chinese bonds can be risky. For example, bonds of real estate developers like Evergrande plummeted in the past as the company faced debt problems. Last Updated: 12/23/2024 View more View less

China bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of China. These funds can be actively or passively managed and may seek to track or... China bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of China. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Renminbi. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. There are three distinct types of Chinese bonds: Onshore, Foreign Currency, and Offshore. Of these, Onshore bonds (listed domestically and denominated in Renminbi) are the largest by issuance (over US$13 trillion). Investors can purchase these funds for income, capital growth, and to gain exposure to the Chinese economy. However, Chinese bonds can be risky. For example, bonds of real estate developers like Evergrande plummeted in the past as the company faced debt problems. Last Updated: 12/23/2024 View more View less