In your view, you said that foreign investors are the main buyer of the bond. However, given all these misinformation within the media, i am puzzled as to how this is really the case where foreigners will be interested in chinese bonds. Additionally, it has always been the case of people parking their money in Triple-AAA western economies, although one plausible explanation is west experiencing chronic inflation. Is foreign enterprises really so interested in chinese bonds? Is there any increased evidence that show such foreign enterprises buying chinese bonds?
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why is it not the case that the lower bond yield is due to lower average growth in future years?
Hi,
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I believe there is a misunderstanding since I hoped I made clear in both my article and posts on X that buyers of Chinese government bonds are currently Local Banks, Insurances, and Pension funds for the most part.
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I also addressed the question about why lower yields in this case aren't a result of lower growth right now, but it might slow down future growth if lenders get stuck in these trades due to an increase in yields resulting from a come back of borrowers' demand
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