A Financial Times Service
China Confidential - Premium Investment Insight
10 October 2012

Recent volatility in the offshore renminbi (CNH) money markets has prompted the yields on Chinese government bonds to surge. Average yields on CGBs have jumped by about 30-50bp in the past few weeks on the back of yet another short-term liquidity squeeze (see chart 1). We expect CGBs to continue to underperform unless the authorities in Beijing and Hong Kong step in to address liquidity pressures.

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CHINA CONFIDENTIAL

An integrated research service from the Financial Times that provides premium, exclusive analysis and predictions on China investment themes.

Using a dedicated FT team of specialists in China and the UK, it taps Chinese sources from the grassroots to the political elite to forecast key trends and issues. It conducts proprietary research to supply its own insights into industry trends and consumer sentiment. By filtering the work of the best Chinese analysts and academics, it keeps you current on key debates as they unfold inside mainland China. Its broad aim is to help the professional investor navigate through the Chinese investment landscape.

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