Amid the Iran conflict, investors increasingly view Chinese assets as safe havens. Charles Gave and Louis-Vincent of Gavekal Research now argue Chinese government bonds are becoming de facto reserve assets, representing a significant shift in global investment patterns.

The father-son duo suggests this trend reflects growing confidence in China's economic stability despite geopolitical tensions. Their analysis indicates institutional investors are gradually reallocating portfolios toward Chinese debt, drawn by yields and relative safety compared to other markets.

This development potentially comes at the expense of traditional safe-haven assets like gold and US Treasuries. The shift could reshape global capital flows and force reconsideration of reserve allocation strategies among central banks and institutional investors worldwide.