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
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
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 and 2 per cent for the benchmark equity measure.
Share with us your feedback on BT's products and services
