QIC Eyes China's $11.6T Bond Market

The video discusses QIC's strategy to diversify its fixed income portfolio by investing in the Chinese bond market, which offers higher yields compared to Australia and the US. QIC aims to be the first Australian money manager to use a new trading platform. Bond Connect seeks to attract large asset managers and pension funds, aiming to expand its customer base as China's bond market opens up. Despite challenges in the Chinese market, the inclusion of Chinese bonds in global benchmarks presents significant investment opportunities.

What is the primary reason QIC is interested in the Chinese bond market?

• To focus solely on domestic investments

• To reduce its overall investment portfolio

• To avoid global indices

• To access higher yields compared to domestic markets

What is Bond Connect's goal for its customer base by 2020?

• To focus only on domestic customers

• To reduce the number of customers

• To maintain 400 customers

• To grow to about 1000 customers

Why is Bond Connect interested in Australian pension funds?

• Australia's pension pool is shrinking

• Australia has a small pension pool

• Australia's pension pool is growing faster than in the US, UK, and Japan

• Australian pension funds are not interested in global markets

What is a potential challenge for investors in the Chinese market?

• The market is not opening up

• There are no global benchmarks

• The market is largely dominated by domestic investors

• The market is too stable

Why are investors cautious about the Chinese market despite its opportunities?

• Due to the lack of domestic investors

• Because there are no investment opportunities

• Because the market is too predictable

• Due to the current malaise in Chinese markets