Chinese government debt is set to be added to one of the world’s most important bond indices, paving the way for an estimated $140bn to flow into the country’s rapidly liberalising capital markets.
FTSE Russell announced late on Thursday in the US that China would next year join its World Government Bond index, which influences the allocation of trillions of dollars invested in sovereign bonds around the world.
The inclusion, subject to confirmation in March, is a milestone for the world’s second-largest bond market, where a longer-term rise in foreign participation has gathered pace this year despite worsening relations between China and the US.