Chinese bonds, especially corporate bonds, can be a lucrative investment for a savvy investor. However, market involvement by foreign parties is limited by the Qualified Foreign Institutional Investor (QFII) program. This program sets an upper limit for investment by foreign investors.Some trading platforms or banks may be able to get you in to the market, but check with them first to see if they offer this service.


Also available are the so-called "panda bonds," which are bonds denominated in Chinese currency but sold by non-Chinese companies. The issuers of the bonds are typically more familiar outside of China, so investors looking for greater certainty may want to turn to these bonds., Chinese corporate bonds are those sold by Chinese companies. Like other corporate bonds, they typically carry a higher interest rate than government bonds, due to their higher perceived risk. The Chinese market recently opened access to small and medium company bond offerings, giving investors a chance to invest in these even riskier, higher-returning bonds.Remember to thoroughly research any investment, especially in risky corporate bonds, and assess your risk tolerance before investing.
The market for Chinese debt issued on the mainland is generally restricted to institutions and may bar individuals from investing. Investors barred from entering the market can instead invest in what are known as "dim sum bonds." These Yuan-denominated bonds are issued in Hong-Kong and are more readily available to foreign investors., Chinese government bonds are those issued directly by the Chinese government. These bonds are issued in Chinese Yuan, rather than USD, so foreign exchange risk must be considered. As of late 2015, these bonds were only available in the United Kingdom, so check with your broker before investigating this investment further., These funds invest in a variety of emerging market bonds, including both government and corporate bonds. Each individual fund also varies in its geographical focus, but all focus mainly on countries outside of North America and Europe. Investing in bond funds allows the investor to usually experience less risk than they would have if they simply invested in foreign bonds themselves. However, there is significant risk associated with these bond funds as well.Be sure to choose a fund that is the right mix of high returns and lower risk. Analyze several different funds and consider the tradeoffs between them.
 Like many emerging economies, China's economy has yet to become as stable as a developed economy, like that of the United States. This means that economic factors that influence security prices, like interest rates and government regulations, can change dramatically in short periods of time. This can have dramatic effects on your portfolio's returns. Additionally, buying many of these investments in the Yuan opens you up to foreign exchange risk if the value of the Yuan drops relative to the US Dollar. Take these risks into account when investing in China.
Find a broker that trades Chinese bonds.
Buy Chinese corporate bonds.
Invest in Chinese government bonds.
Consider emerging-market bond funds.
Understanding the risks.
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