Chinese bank's fund 'going for Euro bonds'

23 April 2008

A large fund joint-owned by China's largest bank is looking into buying up European bonds, Bloomberg reports.

The manager of ICBC Credit Suisse Asset Management commented that the products were preferable to US Treasuries, as the Chinese yuan seems set to rise eight per cent against the dollar in 2008.

Hao Kang said: "If I have to buy bonds, I would choose euro at this stage."

He added: "I wouldn't jump into US Treasuries. I am not so confident about the currency side.''

The dollar's decline in so far this year has been marked: the currency has dropped by almost nine per cent against the euro and by 4.3 per cent against the yuan over this period.

ICBC Credit Suisse currently manages assets worth around $450 billion.

Ownership of the fund is split between Zurich-based Credit Suisse, which owns 25 per cent, and the Industrial & Commercial Bank of China which owns 55 per cent.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development