The recent market instability in the US due to tariffs and economic concerns is leading investors to reconsider Chinese corporate debt, which was previously viewed as too risky. The US market volatility has prompted a shift in focus towards China, with investors seeking to protect themselves against the uncertain economic conditions.

After Donald Trump's election, US high-yield credit markets saw a strong performance, driven by expectations of economic growth and deregulation. However, fears of a trade war have disrupted market stability, causing US debt to underperform while Chinese credit is making a comeback. Chinese corporate debt is becoming more attractive to investors, particularly due to government initiatives focusing on technology advancements and growth targets.

Chinese companies are seizing the opportunity to raise funds, with many tapping into the dollar bond market. Despite concerns about risks in the property sector and the potential impact of trade wars, investors are increasingly interested in Chinese technology firms and their potential for growth. The Chinese economy remains exposed to global market trends, but the renewed interest in Chinese corporate debt reflects a growing confidence in the market.