Yuan bonds prove popular among overseas investors
28 January, 2019
With the increasing opening up of China’s bond market, yuan bonds continue to be popular among overseas investors, Economic Information Daily reported.
By the end of 2018, the total amount of yuan bonds held by foreign institutional investors in the domestic bond market reached 1.71 trillion yuan, a significant increase of about 580 billion yuan from 2017’s 1.13 trillion yuan, an leap of 51.46%.
Experts in the industry believe that after the official opening of the Bond Connect — a mutual market access scheme that allows investors from mainland China and overseas to trade in each other’s bond markets, as well as the appreciation of the yuan — have attracted more foreign investors to increase their holdings of yuan bonds.
Also, for the Chinese bond market, 2019 could be a year to look forward to. Two global bond indices, the Global Aggregate and the WGBI, will announce whether they will include Chinese bonds in April and September of this year.
This is expected to direct hundreds of billions of dollars liquidity to the domestic bond market.
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