‘180-degree flip’ sees global investors turn to China for diversification: Pimco president

AI Summary

Pimco says global investors are turning back toward China to diversify away from crowded U.S. markets, with particular interest in Chinese offshore bonds. The shift follows a sharp improvement in investor sentiment toward the Chinese economy, according to the asset manager's president.

Global investors are turning to China again in search of alternatives to crowded US asset markets, with Pimco seeing Chinese bonds as one of the safest ways to diversify portfolios after sentiment towards the world’s second-largest economy “flipped 180 degrees”. The US-based asset manager, which oversaw more than US$2 trillion in assets by the end of June, had been pointing its clients, particularly those outside the United States, towards Chinese offshore bonds, according to its president,...