Aberdeen Standard Sees Bargains in China Junk Bonds

Aberdeen has increased its holdings in Chinese offshore junk bonds due to attractive yields. The company anticipates policy measures to ease financial conditions, which have made investors wary. Recent targeted measures from China have provided some comfort, with Asian corporate junk bonds showing strong returns. Aberdeen is particularly interested in Chinese developers, a significant part of the offshore bond market, as the property sector is crucial to China's economy. Despite trade war risks, government support for the property sector is expected, although funding remains below previous highs.

Why did Aberdeen find Chinese offshore junk bonds attractive?

• They have a stable return rate

• Due to high yields after a sell-off

• Because of low risk associated with them

• They are backed by the Chinese government

What has given investors some comfort regarding Asian corporate dollar-denominated junk bonds?

• Increased government subsidies

• Targeted measures from China

• Rising global interest rates

• Stable economic conditions

Which sector is Aberdeen particularly interested in?

• Technology

• Healthcare

• Automobile

• Chinese developers

What percentage of the Chinese economy does the property sector account for?

• 30%

• 20%

• 40%

• 10%

What is a natural reaction from the Chinese government to support the economy amidst trade war risks?

• Increase exports

• Support the property sector

• Reduce interest rates

• Enhance technology investments