Real estate and related industries account for more than a quarter of China’s economy, according to Moody’s estimates.
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China’s real estate bonds were once key performance drivers for Asia junk bond funds, but the market share from property bonds has fallen as a result of the country’s property debt crisis.
As a result, investors of high-yield bonds in Asia must brace for lower returns, investment analysts tell CNBC.
The market capitalization of those real estate bonds has fallen from an average of over 35% to around 15% within some Asia high-yield funds as the debt crisis drove down prices of property bonds, according to portfolio managers and…