Matthews Asia’s Patel Likes Longer-Dated U.S. Dollar-Denominated High-Yield in Asia

The video discusses the current market expectations and investment opportunities in Asian fixed income, particularly focusing on longer-dated U.S. dollar-denominated high yield bonds. It highlights the reversal of negative sentiment in the Chinese property market and the resurgence of high yield bonds from Chinese property developers. The inclusion of onshore Chinese bonds in the Bloomberg Barclays Global Aggregate Index is seen as a game changer, attracting significant foreign investment. The video emphasizes the growing importance of the Chinese market for global asset managers and institutional investors.

What is the current preferred investment duration for Asian fixed income according to the transcript?

• 1 to 2 years

• 5 to 7 years

• 2 to 4 years

• 7 to 10 years

What was a significant challenge for the Chinese property market in 2018?

• Increased foreign investment

• Primary market shutdown

• Rising interest rates

• High inflation rates

What change in 2019 is expected to improve the Chinese property market?

• Easing of home purchase restrictions

• Stricter home purchase restrictions

• Decrease in foreign investment

• Increased government regulations

What is a key factor driving foreign interest in onshore Chinese bonds?

• Lack of alternative investments

• Inclusion in a global index

• Decreasing bond yields

• High inflation rates

What is the potential range of foreign investment inflow into China over the next few years?

• $750 to $1000 billion

• $500 to $750 billion

• $250 to $500 billion

• $100 to $200 billion