The overall CNH bond market gained 3.02% in local terms in 2014. Both sovereigns and credits delivered positive returns of 2.6% and 3.14%, respectively. Yields declined as weak growth and a slowing property sector led the People’s Bank of China (PBoC) to ease monetary conditions, implementing targeted reserve ratio requirement cuts and a policy rate cut (in November), and introducing new monetary tools to mitigate hard landing risks.