Global Funds Double China Bond Holdings as Default Starts

Foreign investors boosted purchases ofChina’s onshore bonds by 16 percent this year as some funds look at theyuan’s drop as a buying opportunity.

They increased their holdings to a record 384.1 billion yuan ($62 billion) as of Feb. 28 from 331.9 billion yuan at the end of 2013, according to data from China Central Depository & Clearing Co.and the Shanghai Clearing House. Schroder Investment Management Ltd. says renminbi debt is attractive after the currency’s 2.8 percent loss this year, Stratton Street Capital LLP is applying to enter the onshore market and Western Asset Management Co. doesn’t expect long-term depreciation.

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