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Chinese investors on the hunt for yield are running out of options

With high-paying sovereign bonds falling to decade-lows, risk-averse investors are driving demand for equities promising safer returns

Residential and commercial buildings stand deserted at a construction site at the Caofeidian industrial zone near Tangshan, Hebei province, China. As a further slowdown is expected for the Chinese economy, investors are hedging their bets and trading out of the doom and gloom.


AS CHINA'S sovereign bond yields tumble to decade-lows, investors are piling into the most defensive part of the stock market in search of returns.

The Shanghai Stock Exchange Dividend Index, composed largely of banks, utilities and expressway operators, has rallied 5.6