Deutsche Bank: Great exit for Chinese investors from American bonds

Many Chinese investors have reduced their investments in US Treasury bonds in favor of investing in European debt tools, due to the trade war ignited by US President Donald Trump with China, according to the German banking bank.

The head of the China’s total economy and global emerging markets in Deutsche Bank Lilian Tao said, “We have noticed the decline in the US dollar’s share in the portfolio of Chinese investors who have increased their interest in other markets.”

Tao added in an interview with “Bloomberg” that European high -ranking bonds, Japanese government bonds and gold may be possible alternative options for US Treasury bonds for Deutsche Bank of China in foreign markets.

She pointed to the damaged assets in dollars in recent weeks, with increasing doubts about her status as a safe haven in the wake of the comprehensive attack by Trump on global trade and his decision to impose comprehensive fees on American imports before he partially suspended them for 90 days.

At the same time, China, the second largest external capacity for US Treasury bonds, has become the focus of analysts and dealers in the recent weeks markets, where analysts discuss the role of China in the chaos that has recently struck the American bond market. US Treasury Secretary, Scott Besent, declined earlier this week to decide that there are foreign governments that sold American treasury bonds.

Many Chinese bank customers believe that the level of return in the US Treasury Market is currently very attractive after its rise as a result of the heavy selling wave of bonds recently, according to Tao, adding that these customers are very cautious about the market in light of the increased difficulty of predicting economic and commercial policies of the President Trump administration, and she said in light of the increasing fluctuations, “an increasing number of Chinese customers started looking at the German bonds, or Spain markets, or Italy, which they have not given great attention before. “

The future view of European markets has improved thanks to Germany’s approval of a historic spending package, and the possibility of the European Central Bank to make more interest rate discounts. Tau added, “Given the total economic factors, it is time to review the investments of Chinese investors in the most investment countries.”