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Pimco president says investor sentiment toward China has flipped

Pimco, which oversaw more than US$2 trillion in assets as of end-June, is pointing clients outside the United States toward Chinese offshore bonds to reduce concentration in US dollar and equity exposure.

Reported · Written up by our desk · China

Global investors are looking again to China as an alternative to crowded US assets, and Pimco’s president said sentiment toward the world’s second-largest economy has turned sharply, according to an interview published by the South China Morning Post.

Christian Stracke, who leads the US-based asset manager, said Pimco has discussed Chinese offshore bonds with clients, especially those outside the United States, as a diversification option away from concentrated US positions that built up after years of strong performance in American markets.

Stracke said the questions from non-US clients are often driven by portfolio exposure to the US, rather than specific worries about the United States itself, and that Chinese offshore bonds are one way to reduce concentration in US dollar and equity assets.

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