Tokyo fund buys China bonds for first time on Japanification bet
The deflation-fueled outperformance of Chinese bonds has lured in a Tokyo-based investor for the first time.
A team that oversees investment in foreign government bonds at Asset Management One started buying China's debt in October and has since boosted exposure to the country's interest-rate risk, Hikaru Tanaka, fund manager at the Tokyo-based company, said in an interview on Friday.
China's economic struggles involving excessive debt and real estate "are what Japan experienced in the 1990s,' Tanaka said. "Our long-term view is that it's inevitable for China to follow the path of Japan.'
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