Also, typically investors (or in many case speculators) are taking large risks in China in their equities market and not their debt markets. It is estimated that the Yuan is undervalued by around 40% if it was allowed to float freely (not be pegged to the dollar any longer). Since China is becoming more market friendly - though still communist country - and their currency is estimated to be undervalued, many people see China as a place to take a risk so as to get a high payoff if China continues to liberalize their policies - heck, just a free floating currency would be a potential boon for speculators.
I hope that helped.
Yes, it does.
Thanks!
I was reading about legislation last year concerning China investors getting screwed, and Congress requesting they make good on the bond.
With their rapid, growth and their recent transportation changes, I wouldn't be investing in China so much as the corporations that excel at providing the goods and services of growth.
IMHO, China isn't going to liberalize their policies any more than they absolutely have to to keep the rest of the world quiet.