China’s regulatory crackdown on education and tech companies led early this week to a dramatic sell-off that started in Chinese stocks and extended into offshore Chinese currency and credit markets.
Recent SOE bond defaults signal Beijing’s willingness to let markets price risk more accurately.
As China’s leaders scramble to contain the COVID-19 epidemic, the global community braces for impact to China’s people, equity and bond markets, and economy.
Donald Trump’s policies appear almost certain to contribute to volatility in Asian markets during 2017. For active fixed-income investors who understand the dynamics of bonds and currencies in the region, this creates opportunities.