High Yield Hunting: Chinese Investors Look to India and Indonesia

Bloomberg.com, Chinese investors are broadening their horizons as the country's high-yield issuers lose some of their appeal.

India and Indonesia are getting much of the attention, with a rush of dollar bond sales providing opportunities to move beyond Chinese property developers — a staple of Asia's high-yield bond market, according to CreditSights Inc.

"Many of the investors we spoke to have a large portfolio concentration in China and wish to diversify, fueled by fears over China’s slower growth, capital flow controls and rising debt levels," Lakshmanan R, a senior analyst at the financial research firm in Singapore, said in an interview.

"On the other hand," he continued, "India and Indonesia are seeing robust growth and manageable inflation, with Moody's recently upgrading its sovereign rating outlook on Indonesia to positive and India remaining the fastest-growing among the large economies globally."

Companies such as Jain Irrigation and coal-mining services contractor Bukit Makmur Mandiri Utama (Buma) are among those to have offered bonds offshore in recent weeks. Asian issuers as a whole have sold more than $6.6 billion high-yield bonds so far this year, the most in the same period since 2013, according to data compiled by Bloomberg.

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