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Michael Pettis, economist, professor of finance at Peking University and Carnegie Endowment for International Peace nonresident senior fellow, highlights that China’s 10-year bond yield has fallen to its lowest point in more than a year.
According to Pettis, weak economic growth is pushing investors into Chinese sovereign debt.
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Earlier, Pettis reported that China's property market recorded a significant year-on-year decline in cumulative sales in July. He also noted that Chinese banks raised U.S. dollar fixed deposit rates up to 4 percent as they sought to attract new funds. These developments have contributed to shifts in local investment strategies.