Since 2015 until now, the traditionally so-called "safe-haven asset" have failed in its role to provide a buffer for investors during the sharp pullbacks in risk assets.

ANBOUND's research team is of the view that the “safe-haven asset” has gradually lost its effectiveness and the root cause is the surplus of global capital which has pushed up the value of all assets, including the risk assets and safe assets and this phenomenon will continue for quite some time.

This complicates the environment in which China’s market is facing and in order to mitigate the impacts brought by the excessive liquidity, it requires the country to increase the provision of safe assets through various means.