New high-yield yuan bond offers good returns but with inevitable risks

High-yield yuan bonds were excellent performers and extremely popular investments last year. The Investment Funds Association said Hongkongers spent US$36.9 billion on high-yield funds last year, more than three times as much as on equity funds.

Mainland firms drove the Asian high-yield market. The issuers, in particular property companies, dominated corporate issuance of high-yield bonds. Surprisingly, however, until recently there has been no high-yield yuan bond fund approved for sale in Hong Kong.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1193235/new-high-yield-yuan-bond-offers-good-returns