Deutsche Bank Sees China Clients Eye Shift to Europe From US (1)

Chinese clients have reduced some of their Treasuries holdings in favor of European debt as President Donald Trump’s tariff deluge fuels an exodus from US assets, according to Deutsche Bank AG.

“We have observed some diversification away from US dollar in Chinese investors’ portfolios,” while their interest in other markets picked up, particularly in Europe, Lillian Tao, head of China macro and global emerging market sales, said in an interview.

European high-quality bonds, Japanese government bonds and gold are likely to be the potential choices for investors as alternatives to Treasuries, she said, speaking of Chinese commercial clients’ investments ...