China’s local governments are seeking global investors to cut costs on 17.9 trillion yuan ($2.9 trillion) in debt as the property market weakens, yields surge and economic growth cools to the slowest in 24 years.
JPMorgan Asset Management and Invesco Asset Management say China’s cooling property market is an opportunity to boost dollar bond holdings as the government’s targeted stimulus benefits the largest developers.
A gauge of Chinese shares traded in Hong Kong posted its biggest decline in six weeks amid concern a property-market slowdown will curb economic growth and as a slump in mainland-listed equities weighed on sentiment.
The drop in China’s exports caused by Europe’s debt crisis may affect whether Moody’s Investors Service raises the nation’s sovereign debt rating, said Tom Byrne, a senior vice president at the company.
South Korea’s economic fundamentals are “very sound,” with their strength coming from foreign- exchange reserves, Moody’s Investors Service Senior Vice- President Tom Byrne said. Asian bonds are regarded as a “safe haven” for global investors because of their fiscal strength, Byrne said at a conference in Seoul today.