China Property Junk-Bond Bargain Hunters Trigger 385% Surge in ETFs

(Bloomberg) — One exchange-traded fund shows how investors are increasing bets on a rebound in Chinese property junk bonds.

Surging inflows have lifted total assets of the iShares USD Asia High Yield Bond Index ETF to $1.86 billion from $383 million at the end of August, an increase of 385%. In October alone, the fund attracted a record $773 million. Some 29% of the Singapore-listed ETF’s holdings are in real estate, including notes issued by China Evergrande Group and Sunac China Holdings Ltd.