Next Major Play May Be China Government Bonds

Forget those periodic fears about the size of China’s holdings of U.S. Treasurys. Now, some managers are pointing to buying China’s government bonds as the next big play.

“You’re talking about the third largest bond market in the world and effectively the world has zero allocation,” Hayden Briscoe, director of Asia-Pacific fixed income at AllianceBernstein, told CNBC. “This is a market that’s under-researched and it needs to get into peoples portfolios.”

It’s a turnabout from regularly appearing concerns about China’s large holdings of U.S. government debt. The mainland is currently the largest foreign holder with $1.27 trillion worth of Treasurys at the end of September, or around 7 percent of the total.


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