Making Sense of China’s Bond Market

The video discusses the dynamics of local and onshore bond markets, highlighting liquidity issues and market volatility. It explores the offshore market, particularly dollar bonds, and the impact of Evergrande's situation. The video emphasizes the importance of understanding investment strategies and policies in China, and identifies opportunities in credit spreads and financing cycles.

What is a key reason for the volatility in the onshore market?

• High number of natural buyers

• Lack of natural buyers

• Stable local bonds

• High liquidity

How does the Evergrande situation affect the market?

• It has no impact on the market

• It creates opportunities for investors

• It leads to a decrease in credit spreads

• It stabilizes the market

What is essential for investing in China according to the transcript?

• Catching up with news and policies

• Ignoring policy changes

• Understanding historical data

• Focusing solely on numbers

What is the government's objective regarding financing costs?

• To eliminate financing costs

• To lower financing costs

• To maintain current financing costs

• To increase financing costs

What is a characteristic of the financing cycle in China?

• It is similar to the US

• It is very long

• It is non-existent

• It is very short