More and more Chinese customers are leaving US systems
« We have observed a certain diversification away from the US dollar in the portfolios of Chinese investors », while their interest in other markets, especially in Europe, has increased, said Lillian Tao, head of the China Macro and Global Emerging Markets Sales.
European government bonds of high quality, Japanese government bonds and gold are probably the potential alternatives for investors to government bonds, she said, and spoke of the investments of Chinese business customers in overseas strengths.
Trump’s all -round against world trade
In the past few weeks, their assets have had to take up a lot in the case of the dollars, since their status as a refuge after Trump’s all -round against world trade is increasingly questioned.
China’s status as the second largest foreign owner of government bonds has come to the fore in the past few weeks, since analysts discuss the role of the country in the recent turbulence. US Finance Minister Scott Bessent rejected speculation this week that foreign states would repel their treasury stocks.
They are very careful whether it is a good entry level or just fruit.
Several Chinese customers consider the current market level of the treasury returns to be very attractive after the sale, said Tao. However, they are also very cautious whether it is a good entry level or just fruit, since US politics is becoming increasingly unpredictable.
German federal bonds, Spain or Italy interesting
In view of the increasing volatility, more and more Chinese customers began to deal with German federal bonds, Spain or Italy, which they had not previously paid much attention, ”said Tao.
Due to the approval of Germany, the prospects for the European markets have improved to a pioneering spending package and the scope for further interest rate reductions by the European Central Bank.
« In view of the macroeconomic factors, it is time for Chinese investors to shift their investments to the countries in which they can invest better, » said Tao.
