Exposure to renminbi assets is less than 15% for the fund dedicated to defending Hong Kong’s dollar peg. However, a fund executive cautions against missing out on a China rebound.
Geoffrey Lunt, senior product specialist for Asian fixed income at HSBC Global Asset Management, explains the role and benefits of Hong Kong dollar bonds, especially for domestic institutions.
Global investors drive trading volumes after two Chinese fund houses introduce long-awaited HK dollar trading counters for their respective RQFII exchange-traded funds.