Leveraged coco bonds attracting China's yield chasers

Hong Kong

THE Chinese yuan's declines and lower domestic rates have encouraged the country's investors to go offshore in their quest for yield. That's fuelling more interest in leveraged notes linked to contingent convertible bonds issued by Chinese banks.

"In recent months, we have seen growing interest from onshore Chinese clients in offshore US dollar-denominated assets," said Deng Xixi, head of the financial products department…