Local bonds becoming more attractive to foreign investors

In September, the country's commercial banks sold a net $109.2 billion in foreign exchange, the highest since January 2010, according to China's foreign exchange regulator.

Adrogué said the complex market conditions have highlighted the value of micro-analysis.

His team had been investing mostly in companies in the real estate and finance sectors－two areas integrated with the broader economy.

He said his China analysts visit the country quarterly to gauge the health of those two sectors particularly, before selecting possible corporate bond targets.

"We don't think the traditional EBITA-approach is appropriate. Neither do we focus on credit rating agencies. We have a very strong bottom-up analysis," he said.

EBITA refers to earnings before interest, taxes and amortization－a widely used metric for a company's efficiency and profitability.