China bonds tipped to take other countries' funding

The opening up of China’s bond market to foreign investors poses a threat to indebted economies that many observers don’t appreciate, argued Andy Seaman, chief investment officer at UK fund house Stratton Street. Greater liberalisation will trigger a huge flood of funds into China’s bond market, he forecast. “That capital must have to be allocated from somewhere else, and countries most vulnerable under those circumstances are the most indebted." China operates two schemes that …