MarketsJapan pension whale GPIF in China bond quandary: backlash or gains?
FTSE Russel's embrace of the high-yielding debt forces the fund to decide
The 10-year yield of Chinese government bond tops 3%, higher than returns in developed countries. © Reuters
MASATAKA MAEDA, Nikkei senior staff writer
TOKYO -- Japan's Government Pension Investment Fund faces the tricky question of whether to adopt Chinese sovereign debt into its portfolio, a move that would lead to healthy returns but risks sparking outrage over financially backing an alleged human rights abuser.