Why offshore renminbi bonds are a good bet

Geoff Lunt, investment director of Asian currencies at HSBC Global Asset Management thinks investing in the offshore renminbi bond market should reward investors. He says the renminbi should continue to appreciate against the US dollar and yields, which sank to as low as 2 per cent in the summer, have now risen to 4 per cent. He says HSBC holds a positive outlook for China generally, but even if China did suffer an abrupt slowdown the offshore bonds are dependent on the ability of the issuer, not China, to honour them.