Analysts Warn of Growing Risks in China’s Bond Bull Market

After a months-long bull run in China’s bond market, turbulence could be on the horizon as a growing number of investors seeking quick returns could dump their holdings immediately after hitting their targets, analysts warned.

China’s loose monetary policy has liberated capital for investment, and investors left with limited choices to park their money due to an underperforming stock market have flocked to bonds. Long-term sovereign bonds have been particularly popular, with prices soaring and yields sinking over the past few months.