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HSBC GAM launches passive China bond fund

Peoples_Bank_of_ChinaHSBC Global Asset Management (HSBC GAM) has launched a Chinese government bond fund managed by its passive fixed income team.

The HSBC China Government Local Bond Index Fund tracks the performance of the Bloomberg Barclays China Treasury and Policy Bank 9% Capped Bond Index.

Goldman Sachs Asset Management also launched a China bond exchange-traded fund in October.

Sebastien Faucher, who leads HSBC GAM’s passive team, said: “With global yields at historically low levels, investing in China onshore bonds can offer investors the yield premiums they are searching for.

“At the same time, our view is that this asset class is far less impacted by global risk sentiment, offering compelling diversification benefits.”

Foreign ownership in onshore government and central bank bonds has increased to around 8% and 3%, respectively.

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