Chinese Funds Dump Record Amount of Bonds Amid Redemptions

(Bloomberg) — Heavy redemptions by China’s retail investors are prompting the nation’s financial product managers to slash their bond holdings like never before. Some analysts say that the debt sell-off is far from over.

Managers of domestic mutual funds and wealth management products offloaded 1.3 trillion yuan ($186 billion) of bonds from the interbank market last month, the most on record, according to Bloomberg calculations based on Chinabond and Shanghai Clearing House data going back to 2017.