Subscribers

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

Published Wed, Aug 24, 2016 · 5:50 am
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.

Shanghai

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 per cent in the past month and climbed to the highest level versus the Shanghai Composite Index in a year on Aug 12. The 50-member gauge returns 3.6 per cent in dividends, compared with 2.7 per cent for 10-year sovereign debt...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes

Wealth & Investing

Australia’s First Sentier shuts A$14b of funds after growth disappoints

Investors in US stocks set to demand more dividends

Paradox of high interest rates and a resilient economy

At 5% yields, investors find it’s worth paying for actively managed bond funds again

A more reliable way to get enough investment returns

Inflation, interest rates and oil prices have jolted the markets

Breaking News

Most Popular