LONDON : PineBridge Investments has started buying offshore-listed dollar bonds issued by Chinese property developers, the fund’s head of multi-asset said on Thursday, predicting “extraordinary” returns from current levels.
“We are tiptoeing in… we really love China property, although we’re buying into those higher yielding bonds slowly,” Mike Kelly, global head of multi-asset at the $140 billion asset manager told Reuters.
“We are looking at two-year paper in dollar offshore markets, a rung below state-owned enterprises.”
Regulatory curbs on borrowing by big real estate developers have driven China’s property sector into crisis, highlighted by China Evergrande Group. Once China’s top-selling developer, it is now the world’s most indebted property firm with liabilities of around $300 billion.
But of late, Beijing has acted to restore stability and introduced a raft of measures, including making it easier for state-backed…