J.P. Morgan: If expectations for Renminbi appreciation strengthen, investors may prefer Chinese government bonds even more.

Recently, Luis Oganes, the head of global macro research at J.P. Morgan, said in an interview during the J.P. Morgan China Summit that, in the face of uncertainties brought about by tariffs, the Federal Reserve may find it difficult to implement preemptive rate cuts, while the euro and Asian currencies receive support. He believes that if expectations of the renminbi's appreciation increase, investors may favor Chinese government bonds more, and the outcome of trade negotiations will be a key influencing factor. Global investors may reduce their overexposure to American assets. With the advancement of the internationalization of the renminbi, the Chinese bond market is gradually attracting more foreign investors. Despite the currently low yields on Chinese bonds, if expectations for the renminbi's appreciation strengthen, investors may prefer Chinese government bonds. The outcome of trade negotiations will be a key influencing factor.