(ATF) Chinese bonds rose for a third day, tracking stocks, as rising prospects for more US stimulus lifted hopes of more foreign liquidity surging into fixed-income markets.
The benchmark ATF China Bond 50 Index climbed 0.04% to 106.86 led by the Corporates and Enterprises sub-indexes, each of which advanced 0.05%, the most in two weeks.
While President Joe Biden’s efforts to pass a $1.9 trillion package of aid to gird the economy against further pandemic damage faces obstacles in Congress, investors continue to expect additional spending to materialise eventually. A few have suggested a bill could be passed within the next two weeks.
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The ATF CB50 has risen 1.25% since the start of October, which incorporated the best quarterly performance in 10, on optimism the Chinese economy has reached escape velocity from the pandemic downturn of early 2020.
China credits have rallied this year on expectations Biden’s White House will take a more constructive tone with China, in contrast to the combat stance of his predecessor. China saw $163 billion in inflows last year, compared to $134 billion for the United States, the United Nations Conference on Trade and Development (UNCTAD) said in a report released on Sunday.
Of the other sub-indexes, Financials rose 0.02% and Local Governments added 0.03%.