Nikko Asset Management (Asia), the biggest asset manager based in the region, is making junk dollar bonds of Chinese developers its top pick for 2013 even after their biggest gain in three years.

China accounted for 37.3 per cent of its US$ 503 million flagship Asian High Yield fund, up from 26 per cent in March, according to fund data. The share of real-estate bonds rose to 28 per cent from 21 per cent over that time. Tokyo-based Nikko manages US$ 166 billion in Asia.