China calls on banks to issue bonds

Despite individual investors shifting from bonds to stocks due to the recent easing of pandemic measures in China, the Chinese administration has taken action. According to Bloomberg, Chinese authorities have called on banks to buy bonds. It was reported that Chinese authorities have called on the country's largest insurance companies to buy the bonds that individual investors have started to sell intensively. According to Bloomberg, some bank executives present at the meeting also suggested that they launch their own private banking units to support the bond market. With the increasing pace of easing of Covid-19 measures in China recently, individual investors have liquidated their bond positions and started buying stocks that are expected to be positively affected by the opening of the economy. This has caused the yields on the country's bonds to rise. China's 10-year government bond yield rose by 7 basis points over the past week, reaching its highest level since November 2021 at one point. China, which lifted PCR requirements in many regions and areas this week, has finally started allowing home quarantine. According to the news in the Wen Wei Po newspaper this morning, the Hong Kong administration is preparing to lift the mask requirement outdoors. Meanwhile, JPMorgan Asia and China Equity Strategy Director Wendy Liu said she sees a 10 percent increase potential in the MSCI China Index by the end of 2023.