CHINA FIXED INCOME

After a quarter century of China's meteoric economic rise, coupled with its arrival onto the global financial stage via sweeping reforms and liberalisation, China's role in regional and international capital markets is rapidly changing. Broadly, Beijing is focused on more measured, quality growth fuelled by homegrown initiatives. Specially within fixed income, this means allowing a more efficient market to develop where buyers reprice risk amid greater transparency and, in turn, attract more foreign investors which view China as a long-term strategic allocation in its own right. Yet as defaults loom, the outlook for the bond market is at a pivotal point.