In China, there could be more measures to reduce the pressure on the real estate market. The bond giant is also optimistic about high-yield bonds issued by a number of major Chinese real estate developers, saying that they could be an attractive investment opportunity in 2019.
"Given the external trade pressures, the government is likely to try to boost the economy" to boost consumption and ease the real estate market, "wrote Pimco's portfolio manager in a March report.
" Possible political levers include easing credit terms for developers, the easing of the price cap, the partial easing of house purchase restrictions, the lowering of mortgage rates and improved availability of mortgage loan ratios. In recent months, signs of gradual relaxation have emerged at local government level, "she added.