• cawsby [he/him]
    ·
    3 years ago

    Chinese bond market isn't stable enough atm for this to realistically happen.

    Chinese bonds lost an average of 30-40% since summer of 2021.

    A lot of this has to do with international investors unrealistic expectations of China stopping their zero covid strategy though. Imagine if China let it rip like the United States did, there would be 10's of millions dead.

    • Malagueta [she/her]
      ·
      edit-2
      3 years ago

      Long term stability trumps short term return over time. Investors weren't paying enough attention to how Chinese bonds functioned, they'll adapt and return once their fear wears off.