International financial information provider Bloomberg will include Chinese bonds into one of its global indices, enabling further opening-up of China's bonds market, the company confirmed 31 Jan.
Chinese RMB-denominated government and policy bank securities will be added to the Bloomberg Barclays Global Aggregate Index starting in April, phasing in over a 20-month period.
Chinese bonds will become the fourth largest currency component, following the US dollar, euro and Japanese yen, after full inclusion.
China's bonds market stood at about 86 trillion yuan ($12.84 trillion) by the end of 2018, with about 1.8 trillion yuan held by global investors, up 46 percent year-on-year.
The inclusion is the latest opening-up step of China's financial markets and reflects global investors' confidence in the Chinese economy, the country's central bank said in a statement.
With the upcoming inclusion of China to the global index, the country's bond market presents a growing opportunity for global investors, Bloomberg Chairman Peter T. Grauer said in a statement.
Besides the Global Aggregate Index, Chinese RMB-denominated debt will be eligible for inclusion in the Global Treasury and EM local Currency Government indices starting April.
The central bank will work with other agencies to improve related mechanisms to nurture a more friendly and facilitating investment environment.
Source: China Daily