Bonds might outperform stocks this year
By Zhang Shidong and Judy Chen | China Daily | Updated: 2010-03-04 08:03
SHANGHAI - China's bonds may outperform stocks this year as the government keeps inflation under control, according to Fortune SGAM Fund Management Co, a venture with Societe Generale SA, France's second-largest bank.
"Bonds have been outperforming and I expect that to continue," Tan Weisi, Shanghai-based head of the fixed-asset department at Fortune, with about $9 billion of assets under management, said in an interview.
"If CPI doesn't shoot up to say 5 percent, there's no incentive to raise the interest rate. The government is really successful in controlling inflation expectations and right now the expectations are under control."
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