Chinese Bonds Favored, UBS Asset's Briscoe Says

The video discusses the Chinese bond market, highlighting the influx of supply backed by the Medium Lending Facility (MLF) and the attractiveness of yields. It explores the market dynamics, including banks switching to local government bonds and the impact of PBOC injections on the credit market. The economic outlook suggests a slowdown, yet the bond market remains strong. Structural inflows into Chinese bonds are driven by institutional investors and the trading of the Shanghai oil contract, indicating a significant structural trend.

What facility is backing the influx of Chinese bonds into the market?

• Medium Lending Facility (MLF)

• Long-term Investment Fund

• Government Reserve Fund

• Short-term Credit Facility

Why are yields at the 370 level considered attractive?

• As a result of currency strength

• Due to rate hikes

• Because of market liquidity

• Owing to government subsidies

What is the current trend in the Chinese bond market according to the second section?

• Volatile fluctuations

• Strong performance

• Stable growth

• Declining performance

What is one reason for the structural inflows into the Chinese bond market?

• High interest rates

• Institutional investors' low base

• Government incentives

• Currency appreciation

How does the Shanghai oil contract influence the Chinese bond market?

• Through direct investments

• By increasing oil prices

• Through recycling of funds

• By reducing bond yields