Ping An of China Prefers Short-Term Debt as Iran War Hedge

Ping An of China Asset Management (Hong Kong) plans to ramp up purchases of short-term debt issued by Chinese banks to shield its investments from market volatility sparked by the Iran war.

The firm favors negotiable certificates of deposit with maturities within three months to limit “duration,” a bond’s sensitivity to changes in interest rates. “I prefer instruments with no duration exposure and minimal sensitivity to interest-rate volatility,” Gordon Tsui, head of fixed income, said in an interview.