Chinese investors losing appetite for bonds in 2017

SHANGHAI: Stung by a late-2016 tumble in bonds, Chinese investors are signalling a switch into shares this year in the hope of better returns as the economy recovers and as a hedge against rising inflation and tighter monetary policy.

That would be a dramatic reversal from last year, when assets under management for bond funds surged 142% to 1.93 trillion yuan (US$280bil), while equity and balanced fund assets dropped 17% to 1.99 trillion yuan, according to data from Chinese consultancy Z-Ben Advisors.