Global Fixed Income Strategy - March 2019

Monthly insights and updates from the Invesco Fixed Income team

Apr 1, 2019 | Invesco Fixed Income

Economic and market developments in China have become increasingly important to global investors. As the second largest economy in the world, China’s growth prospects have major repercussions for the global economy through their impact on international trade, foreign direct investment and financial conditions. With the planned inclusion of China’s onshore bond market (the second largest bond market in the world) in major bond indices, China and its macro policies are also expected to increasingly impact international investment and
investor sentiment.

Below we discuss recent policy developments in China and our macro outlook. Policy easing measures implemented in 2018 have resulted in lower corporate funding costs and improved credit growth, and we believe growth data will begin to show signs of recovery in the second quarter of this year. Going forward, China will likely continue to ease policy in accordance with central government plans announced this year, and we expect to see a
generally positive outcome to trade talks. In our view, these factors will contribute to further improvement in growth and recovery in Chinese assets.

To read more of IFI’s views, click on “Download PDF”.

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