China's top bond fund executive expects 'substantial correction' in riskier debt

Shanghai

AN executive who oversees China's top bond fund, which returned 24 per cent in the first nine months, predicts a "substantial correction" in riskier debt as the restart of initial public offerings drives money back into shares.

Cash that piled into lower-rated notes after a stock rout in June is likely to return to equities, according to Shao Jiamin, head of fixed income investment at HFT Investment Management Co in Shanghai. HFT Pure Bond Fund ranked No 1 among 270 peers this year through Sept 30, according to Haitong Securities Co.