The big question is how many of these Chinese corporate bonds are a portion of global foreign currency reserve. A lot of foreign reserves are held in foreign denominated bonds instead of currency.
And, since people never really learn but keep repeating the same mistakes, how much are pension funds holding onto?
A good question. Foreign fixed income is a standard portion in most portfolios. China has been very active for years now developing Renminbi denominated debt instruments and seeking trade agreements that settle in Renminb instead of dollars.
