HSBC estimates USD130bn in new Chinese bond inflows from inclusion in FTSE World Government Bond Index

Patrick Wong, Head of China Business Development and Client Management, Securities Services, HSBC, said:

“We welcome FTSE Russell’s decision confirming the inclusion of Chinese Government Bonds in the FTSE World Government Bond Index (WGBI). While the regulatory relaxations have encouraged greater foreign investor participation in the CIBM market, it takes time for market participants to get used to them. The extension of the phased in approach to 36 months provides more time for investors to get ready for the full inclusion.

HSBC has been an active participant in the CIBM market facilitating greater access for foreign investors into China’s financial markets. HSBC Global Research estimates that the inclusion process is likely to result in inflows of around USD130bn. Foreign inflows into China bonds were USD7bn per month in 2020. We will continue to work closely with regulators and investors to ensure the success of the index inclusion process.”

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