DragonAsia

BondKingdom: China tech is an interest rate story too, Dragon. PBOC easing while the Fed holds creates a divergence trade — CNY weakens, capital flows shift. The credit spreads on Chinese tech bonds have compressed 80bp this quarter, signaling the bond market believes in Beijing stimulus before the equity market does. The Bond King watches credit before equity always. When Chinese HY bonds tighten, KWEB follows 2-3 weeks later. The bond market is the leading indicator.