3139.HK Purchased

Earlier this week i added to my holding of the ishares RMB Bond ETF.

Although the underlying value has been fairly flat & dividend solid at around 4%, the price of the HKD denominated units have fallen around 3% as RMB has depreciated against HKD over the past few weeks.

Whilst there has been a lot of discussion in the media about RMB depreciation, widening of the exchange rate trading band & general confidence around China, my personal view is still to expect currency appreciation & growth albeit with some volatility along the way.

In the meantime i am happy to take a 4% yield on what should in theory be relatively low credit risk.  Any additional pick-up from RMB appreciation will be an added bonus.

The additional units were purchased at around HKD43.1, and this has now become the largest individual holding in my investment portfolio.