It is estimated that US$100 billion dollars will flow into the Chinese bond market, after China’s inclusion to the Bloomberg Barclays Global Aggregate Indices, Yicai.com reported.
Both the People’s Bank of China and Bloomberg have confirmed that the yuan-denominated Chinese government bonds and policy bank securities will be added to the index. The inclusion will start in April and be phased in over a 20-month period.
After that, the yuan-denominated Chinese bonds will become the fourth-largest currency bond following the dollar, euro and yen.
As of January 24, 2019, data shows that 363 Chinese bonds will be included in the index which will account for 6.03% of the market valued at US$54.07 trillion.
As of the end of 2018, the Chinese bond market became the third largest bond market in the world, with a scale of 86 trillion yuan.
Among them, international investors held nearly 1.8 trillion yuan of bonds, a year-on-year increase of 46%.