Core Insights - The global financial market is experiencing a trend of reallocation towards dollar assets and increasing geopolitical uncertainties [1] - Investors are reassessing their allocation to dollar assets due to the downgrade of the US sovereign rating and rising fiscal deficits [1] - Asian bonds are becoming an attractive alternative due to their appealing yields and shorter durations [1] Group 1: Market Trends - The decline in local fixed deposit rates to approximately 2% has led investors to consider Asian fixed income as a viable option without taking on excessive risk [1] - Overall yields on Asian bonds are higher than comparable US or European assets, with generally lower volatility [1] Group 2: Investment Opportunities - For Hong Kong investors, Asian fixed income aids in achieving income, risk management, and regional diversification objectives [1] - Asian fixed income has a low to moderate correlation with major global market bonds such as US Treasuries and German government bonds, providing good risk diversification [1] Group 3: Market Maturity - The local currency bond market in East Asia has significantly matured, with the total amount of local currency bonds increasing from $866 billion in 2000 to over $23 trillion in 2022 [1] - The enhanced market depth contributes to liquidity and attracts foreign investment, further solidifying the stability of this asset class [1]