China Assets Stand Out as Oasis of Calm Amid U.S. Bank Failures

The collapse of Silicon Valley Bank raised concerns that banks hit by rising interest rates will prompt the Fed to reassess its tightening path

(Bloomberg) — Chinese markets have been notably unperturbed by the global convulsions sparked by the fallout from a sudden rush of U.S. banking failures.

The biggest drop in two-year Treasury yields since the early 1980s hasn’t had much impact on their Chinese equivalents, which have barely moved. Onshore credit spreads haven’t budged since Friday, while Chinese mainland stocks rallied Monday on signs that monetary policy will largely be stable this year. They fared much better amid a broad equity sell-off Tuesday.