Foreign demand for Chinese bonds is surging: Trading volume of Chinese onshore bonds traded by overseas funds via Hong Kong jumped to a record $179 billion in March. Chinese onshore bonds comprise government and state-backed Yuan-denominated bonds, which are accessible to foreign investors through the Hong Kong market. At the same time, average daily turnover surged to an all-time high of $8.1 billion. Trading volume has more than DOUBLED since October 2025. This comes as the Iran War has driven global investors to seek alternatives to traditional safe-haven assets such as US Treasuries. Yuan-denominated bonds have outperformed global peers since the conflict began, supported by China's abundant liquidity and limited exposure to the energy shock. Foreign investors are piling into Chinese bonds at a record pace.(The Kobeissi Letter)