China Onshore Convertible Bond Market: A Wealth of Opportunities

This Smartkarma Original is a follow-up to our first Smartkarma Original on China's onshore bond market - Investing into China's Growing Onshore Bond Market - with special focus on the rapidly growing onshore convertible bond (CB) market. This Original covers the key areas of China's onshore CB market that are essential for global institutional investors interested in capturing the opportunity in this interesting bond market segment. We suggest readers to read this Original in conjunction with Investing into China's Growing Onshore Bond Market in order to get the full picture on China's onshore CB market.

What’s Original?

This Original is the first comprehensive Insight dedicated purely to the onshore CB market in China. Although outstanding onshore CBs only amount to 0.4% of China's total onshore bond market, foreign investors are very keen to invest in this segment, as reflected by the heavy trading by the Qualified Foreign Institutional Investors (QFII).

In this Original, we explain the history of China's onshore CB market, the unique market structure and features, key development outlook and opportunities and the basic need-to-knows for the foreign investors. This Original comes with very detailed figures specifically focused on the onshore CB market and reveals the very important trends currently taking place.

We believe the CB market is one of the fastest growing segments in the onshore bond market in China. Despite the inherent high volatility characteristic of onshore CBs, the long-term trend is that it will gain further significance in China and among foreign investors' portfolio, in our view.