Chinese Bonds Are Appealing as Reserve Assets, Gavekal Says

Chinese government bonds are emerging as a viable alternative reserve asset after holding up through recent geopolitical shocks including the Iran war, according to Gavekal Research.

The report challenges a core assumption of global reserve management that US government bonds and the dollar act as “shelters in a storm.” Sovereign bonds in China have held firm amid the recent Middle East tensions, analysts Charles Gave and Louis‑Vincent Gave wrote in a report on Tuesday.