cross-posted from : https://lemmy.zip/post/62523164
Investors are scooping up Chinese debt, which has stood tall in sliding bond markets globally, betting that China’s low inflation and preparedness for an oil shock allow it to resist raising interest rates.
Chinese debt markets drew $2.5 billion of foreign inflows in March despite the U.S. and Israeli war on Iran, a sharp contrast from the $16.7 billion in outflows from other emerging markets, according to the Institute of International Finance.
‘Betting on China’s low inflation’ is a bold statement as China has been (unsuccessfully) betting deflation for mote than 3 years now. It’s not good for the economy nor the bond market.
Inferring that China is a ‘shelter’ from war given a single month’s data as in this article is even bolder imho. We’ll see what happens next months (but I am confident that OP will find something that satisfies their propaganda lust).
The interesting bit is that even the South China Morning Post - a propaganda outlet in China operating under the Chinese Communist Party’s censorship regime - is more critical about the Chinese bond market that Reuters (and Bloomberg, they haven been conveying similar pro-China narratives for some time; this has not necessarily to do with Bloomberg’s collaboration with a range of Chinese institution).
Citing Chinese bond market experts, the outlet says that China’s bond market moves “suggest limited conviction in the reflation narrative”, adding that the “uptick in prices was likely driven more by higher commodity costs than a genuine recovery in demand, which remained constrained by a weak labour market and a prolonged property downturn.” [Here is the source.]