Diving Into China's Local Currency Bond Market

Western Asset answers questions about the latest developments regarding the local currency bond market in China.

    Desmond SoonHead of Investment Management, Asia (ex-Japan)/Portfolio Manager

    Steven T. SaruwatariProduct Specialist

    KEY TAKEAWAYS

    • China’s local currency bond market is the second largest bond market in the world, behind only that of the US.
    • Although foreign ownership of China local currency bonds has historically been low by design, China has been making foreign ownership more accessible over the past 15 years.
    • We believe the Chinese local currency bond market may present a good diversification and yield enhancement opportunity relative to the very low yields found in other developed bond markets.
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