Abstract
Globalisation has led to international asset classes becoming increasingly tightly correlated. This has effected diminishing diversification opportunities for international investors who invest in bonds, equity and property. New markets and asset classes must be explored to identify potential diversification opportunities. One such opportunity presented itself recently. In 2017, the Chinese government lifted its restrictions on the Chinese government’s debt and opened its government bond market to international investors. Previously this market was only open to select investors who had limited access. This newfound opportunity led to the main research question of this study: could China (the world’s second largest economy by GDP), be a potential diversification opportunity for global bond investors who mainly invest in developed market bonds?...
M.Com. (Finance)