I was thinking about investing in a bond fund £CNYB with a current price of £3.99 , it invests in yuan denominated bonds issued by the Chinese 🇨🇳 treasury & has a dividends yield of 2.66% & a TER of 0.35% which means the fund manage doesn't take a huge cut & the dividends yield seems reasonable.
If US government bonds are generally considered safe longer term assets & since China has a successful enough economy to be considered an economic rivial to the USA 🇺🇸 then isn't it fair to presume that the Chinese government bonds could be safe long term assets too ?
I know there's sort term risk due to geopolitical issues & worse case scenarios like a world war so Chinese assets ownership could get frozen or seized(I'm in the UK) by unfriendly countries. Plus issues like what's going on in the Chinese real easte market with evergrande & country garden holding insane amounts of debt plus slowing economy growth.
Anyway what do you guys think ? I get the feeling most investors/traders here are US based & only care about the US market & wouldn't have any interest in anything outside of that so I'll be interesting to hear your opinions & any advice you lot might have.
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