A recent survey found Asian G3 bond investors felt ASEAN credit, especially Indonesia, offered the most attractive risk-adjusted returns. But, as the Asset reports, foreign capital dependent Indonesia is moving out of favor, and people are now looking at China.

Wilfred Wee portfolio manager at Investec Asset Management says “China manages its currency as a basket as well as ASEAN as a whole. The rest will be a bit idiosyncratic and to be fair I don’t think that there are any strong stories.”

Bryan Collins of Fidelity International agrees, adding that some instruments in the China complex “are probably going to be the sweet spot for low volatility, reasonably attractive, single digit total returns.”