One of the arguments put forward in favour of including Chinese government bonds in the Emerging Markets (EM) local currency government bond index (GBI-EM GD) was that investors in this often volatile asset class would gain a potential new ‘safe haven’ destination within the asset class itself. If so, they might no longer mindlessly have to redeem in favour of Dollars at every outbreak of risk aversion, provided, of course, that managers actively allocate to China at such times.