Foreign Institutions Raise China Allocation as 10-Year US Treasury Yield Tops 5.34%

The timing is notable: foreign institutions turning more constructive on Chinese assets precisely as US yields hit a multi-decade high suggests the allocation case is being weighed against relative valuation and diversification rather than carry alone. That said, upgraded views are not the same as deployed capital, and the gap between published house calls and actual positioning is where the real signal sits. The open question is whether this shift reflects a durable reassessment of China exposure or a tactical tilt that reverses if the rate backdrop or risk sentiment changes.