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.

How does the property sector contribute to the Chinese economy according to the text?

What recent trends have been observed in funding for developers?