Swiss Bank Asset Management: Third Wave of Foreign Capital Inflows into China's Bond Market Emerges, "Diversification" Drives Domestic Debt Demand

　Gloomy Finance August 12 | Swiss Bank Asset Management's CEO and Head of Asian Fixed Income, Lin Gui, noted that from the perspective of the three waves of foreign capital inflows into China's domestic bond market, the current third wave is driven by the trend of "diversification." As more investors lose confidence in the US economy due to increasing tariffs and uncertainty over US economic policies, the trend of diversifying away from USD assets will continue, leading to increased demand for Chinese domestic bonds. The prospects for China's domestic bond market look bright. Meanwhile, the market widely expects a further rate cut in September by the US, which may narrow the yield gap between the US and China. As such, Chinese bonds have good diversification potential and will continue to attract investors seeking diversification.