The launch of the first offshore index exclusively tracking investment grade corporate bonds in China is attracting interest from exchange traded fund providers, despite continued obstacles facing foreign investors who wish to increase their allocations to China’s credit bonds,

The new Bloomberg Barclays Liquid China Credit Index, which is designed to track the liquid, tradable portion of onshore renminbi-denominated credit bonds, was launched last week, just days after the full inclusion of Chinese government and policy bank bonds into the Bloomberg Barclays Global Aggregate Index.

“We have had global ETF issuers expressing interest in launching products tracking the China credit index, whether that is the LCC [index] or custom versions of the index, to suit their needs,” Ji Zhuang, Asia-Pacific head of indices at Bloomberg, told Ignites Asia.