“There’s a 4% yield gap that I think is very attractive,” she said, recommending sectors including banks, utilities and energy.
Chinese stocks started 2025 on a sour note, falling 2.9% on Thursday in their worst start to a year in almost a decade. The CSI 300 Index slipped again on Friday. While a slate of stimulus measures provided by authorities last year has put a floor under a market rout, traders have been bracing for greater economic uncertainties ahead of US President-elect Trump’s inauguration later this month.
China has shown willingness to provide more fiscal stimulus to offset the impact of tariffs, but investors are concerned about “how quickly and responsively” authorities can act, said Lee.
The Chinese government announced on Friday it will issue more ultra-long special treasury bonds in 2025 to support trade-in programs for consumer products and major projects.
See also: Chinese stocks in Hong Kong enter bull market before US talks
Meanwhile, the country’s bond yields have been falling on economic concerns and expectations for further monetary easing. The 10-year government bond yield dropped below 1.6% on Friday for the first time ever.
