China Region Bond

China region bond mutual funds and ETFs invest the majority of their... China region bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of China, Taiwan, and Hong Kong. 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, Taiwan Dollar, and Hong Kong Dollar. 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. China is by far the largest bond issuer in the China Region. Taiwan has around US$220 billion of government debt, vs. an estimated US$18 trillion for China. Investors can purchase these funds to gain broad exposure to Mainland China, as well as the Special Administrative Region of Hong Kong, and the disputed territory of Taiwan. These funds are not for the risk-averse. China has a large amount of debt, and in the case of Taiwan, higher influence by China over disputed territory could be bad for bond holders. Last Updated: 04/24/2024 View more View less

China region bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of China, Taiwan, and Hong Kong. These funds can be actively or passively managed and... China region bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of China, Taiwan, and Hong Kong. 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, Taiwan Dollar, and Hong Kong Dollar. 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. China is by far the largest bond issuer in the China Region. Taiwan has around US$220 billion of government debt, vs. an estimated US$18 trillion for China. Investors can purchase these funds to gain broad exposure to Mainland China, as well as the Special Administrative Region of Hong Kong, and the disputed territory of Taiwan. These funds are not for the risk-averse. China has a large amount of debt, and in the case of Taiwan, higher influence by China over disputed territory could be bad for bond holders. Last Updated: 04/24/2024 View more View less