JPMorgan is proposing a new Asia credit index with slashed China weighting in parallel to its existing $85 billion Asia credit index, two sources said, amid growing geopolitical tensions and dimming appetite for Chinese property bonds.
The move comes after JPMorgan initially proposed expanding the existing JACI, but with China weighting cut to 29.86% from 43.14% now, according to a proposal shared with investors in January and reviewed by Reuters, and the second source and two other people.
JPMorgan describes the new index, named JACI Asia Pacific, as an "enhanced" version of JACI with added exposure to more Asia-Pacific markets such as Japan, Australia, New Zealand and Papua New Guinea, the source said. JACI is a premier Asia credit index, tracked by fund managers controlling more than $85 billion worth of assets, according to the January proposal.
, having taken a hit from regulatory crackdowns and a property sector liquidity crisis, to avoid geopolitical risks. "I think there's been some nervousness in the past around Chinese equities, and you've seen it play out in valuations over the past few years. I would imagine that people are going to have similar concerns about fixed income as well."
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Exclusive: JPMorgan proposes new Asia credit index with lower China weightingJPMorgan is proposing a new Asia credit index with slashed China weighting in parallel to its existing $85 billion Asia credit index, two sources said, amid growing geopolitical tensions and dimming appetite for Chinese property bonds.
Read more »
China responds to US report endorsing lab leak theory, accuses US of ‘smearing China’China dismissed a new report that COVID-19 most likely originated from a lab on Sunday, calling the claim a 'smear' from the U.S. despite months and years of research.
Read more »
China responds to 'politicized' Wuhan lab leak theoryChina's Foreign Ministry said the theory was an attempt to smear China.
Read more »
JPMorgan cuts mortgage jobs in Columbus, CEO Jamie Dimon says bank is 'mostly expanding'JPMorgan Chase CEO Jamie Dimon discussed his company's employment locally, as well as the Columbus economy and what lies ahead.
Read more »
JPMorgan says little-known West Virginia fintech is positioned as ‘bank of choice’ for online gamingThe bank began research coverage of MVB Financial with an overweight rating, citing its position as the dominant bank in online sports betting and gaming.
Read more »
Risk of 'wrathful Old-Testament style' reaction from central banks is rising, JPMorgan saysThe 'gentle and forgiving path' taken by developed-market central banks to combat inflation in the past year is likely to prove unsuccessful, JP Morgan...
Read more »