Investment house finds value in Chinese property bonds

Business | 17 Jul 2019 5:28 pm

Loomis Sayles Investment Asia favors mainland property bonds, while it cautions investors on the mainland tech sector.

The valuations of secondary Chinese property bonds are relatively attractive amid the low yield and low rate environment worldwide, while there might be some liquidity squeeze in the second half, with some small property companies facing high default risks, said Chow Thu Ha, portfolio manager at Loomis Sayles. Many mainland developers interviewed have said they are well prepared for that.

Whether the US Federal Reserve cuts the interest rates by 25 basis points or 50 basis points is not so important Chow said.

Loomi Sayles forecasts Chinese growth at 6.3 percent for 2019.

it set up an Asia Bond Plus fund tracking mainly Asian bonds and some African, European, and Middle East bonds for the professional investors.

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