Japan Funds Snap Up China Bonds, Shun Rest of EM Debt
- Japan funds buy net 505.7 billion yen of Chinese bonds in 2020
- Except China, investor interest in EM debt is fading: Monex
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Japanese funds are ramping up China’s bond purchases while shunning most other emerging-market debt as the coronavirus pandemic led to worsening government finances and lower interest rates.
Yield-sensitive Japanese funds bought a net 85.6 billion yen ($822.6 million) worth of Chinese bonds in October, boosting the total this year to 505.7 billion yen, according to the latest data from Japan’s finance ministry. They were net sellers of Philippine, Indonesian and Indian bonds as well as South African and Mexican debt.