Market turmoil will boost bond sector

Bonds in China will benefit from the nation's equity market woes as investors shift more money to debt, analysts said.

The Shanghai Composite Index has plummeted more than 30 percent from its June 12 peak and has kept on plunging even after interest-rate cuts, a wave of trading stoppages and stock purchases by State-directed funds.

Shares still face "great volatility and uncertainty", China International Capital Corp analysts led by Chen Jianheng wrote in a report on Tuesday. "That may result in some investors with lower risk appetites turning to fixed-income products such as banks' wealth management products, money market funds and bond funds."