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 American investors are among the many foreigners who want to make a profit from China, especially its bond market.

One clear area of ​​interest is government bonds, where the Chinese for ten years have a yield of more than 3.2%. In contrast, the recent rise in U.S. prices has forced the Treasury's ten-year yield to only 1.7%. This broad gap gives investors in Chinese government bonds a much higher return.

“The U.S. Investors continue to be very interested in China's (market) investment, ”said Tao Wang, Asia's chief economist and China's chief economist at UBS, Thursday in an interview with the Institute of International Finance. "Especially in the context of the bond market, there is an increase in the interest rate structure."

While "China offers a high and stable yield," he noted that some countries are still using methods to increase growth which has led to poor yields on many bonds. That means buyers of the bond will have to pay the borrower when the bond is matured, rather than earning money from it.

Specific details for the management of U.S. investors It was unavailable, but investors outside the Chinese mainland held about 3.5% of the yuan bond issuance since the end of February. China's foreign bonds, in particular, accounted for about 10.6% of issuances last month.

In just two years, China's foreign bonds have nearly doubled to more than $ 2 billion.

Rising interest comes as Chinese bonds are added to major investment indicators followed by global investors, generating billions of dollars in Chinese credit purchases.

The acquisition has grown over the past few months for JP Morgan Asset Management’s China Bond Opportunities Fund.

"There is no clear reason why we should not be separated from this particular market," he said. Pang pointed out that China's economy is ahead of the rest of the world when it comes to recovering from the coronavirus pandemic, saying the chances of "China's biggest sales are at the lowest prices in the world."

As global interest in the Chinese market has grown, most of the investments are still in the “experience” category as foreign investors still need to learn more about China's major market.