Asia Unhedged | China’s bond market forecast to grow 27% in 2017 as foreign investors invited in
A Chinese national flag flutters outside the headquarters of the People's Bank of China, the Chinese central bank, in Beijing, China April 3, 2014.   REUTERS/Petar Kujundzic/File Photo
A Chinese national flag flutters outside the headquarters of the People's Bank of China, the Chinese central bank, in Beijing, China April 3, 2014. REUTERS/Petar Kujundzic/File Photo
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China’s bond market forecast to grow 27% in 2017 as foreign investors invited in

Onshore bond market to be included in global indices as the central bank is making moves to entice overseas investors

March 13, 2017 11:02 PM (UTC+8)

Deutsche Bank estimates China’s bond market to grow 27% in 2017, as policy makers say they will create a “more convenient and friendly environment” for foreign investors. Carrie Hong reports for Bloomberg that Citigroup will include onshore Chinese debt in certain indices, while China’s central bank allows currency hedging for bonds as part of efforts to lower barriers. Standard Chartered Plc noted that a move to allow overseas investors access to China’s foreign exchange derivatives market went further than expectations. Goldman Sachs analysts, however, said that concerns remain on issues such as market access, liquidity, and reporting rules.

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