JPMorgan, one of the world’s largest investment banks, has proposed a new Asia credit index with a lower weighting for Chinese sources. According to sources, the index is designed to provide a more diversified view of the Asian credit market.
The proposed index is expected to include a greater representation of non-Chinese issuers, such as those from India, Indonesia, Malaysia, and the Philippines. It will also feature a smaller weighting for Chinese issuers, which currently account for the majority of the index’s value.
The new index is part of JPMorgan’s efforts to diversify its Asian credit portfolio and reduce its exposure to China. It follows similar moves by other international banks to reduce their exposure to Chinese debt.
The new index is expected to be launched later this year and will be made available to investors in the region. It is likely to be welcomed by investors seeking to diversify their portfolios and reduce their exposure to Chinese debt.
JPMorgan’s proposal is the latest move by an international bank to reduce its exposure to Chinese debt. It follows similar moves by other international banks, including Citigroup and Goldman Sachs.
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