PBOC:Chinese Government Bonds to be Included in FTSE WGBI

 FTSE Russell announced on September 25, 2020 that it will add Chinese government bonds to its World Government Bond Index (WGBI).

The reform and opening-up of the Chinese bond market has been pushed forward steadily in recent years. As of end-August 2020, the market was worth RMB112 trillion in terms of its outstanding volume. In particular, RMB2.8 trillion of bonds were held by international investors, registering an average annual growth of 40 percent in the past three years.

FTSE Russell CEO Waqas Samad said that Chinese Government Bonds will be added  to the FTSE WGBI from October 2021. The Chinese authorities have worked hard to enhance the infrastructure of the government bond market. Pending an affirmation in March 2021, international investors will be able to access the second largest bond market in the world through FTSE Russell’s flagship WGBI.

According to Pan Gongsheng, Deputy Governor of the People’s Bank of China (PBC) and Administrator of the State Administration of Foreign Exchange (SAFE), among the three major global bond index providers, two of them have already included Chinese bonds in their principal indices. Now, FTSE Russell has announced an inclusion timetable for Chinese government bonds in its WGBI index. This fully reflects the confidence that international investors have in the long-term sound development of China’s economy and in China’s commitment to further opening up its financial markets, which is very much welcomed by the PBC.

Next, the PBC will continue to work with all parties concerned to proactively improve relevant policies and institutional arrangements, further open up the Chinese bond market and provide a more friendly and convenient investment environment for investors domestically and abroad.

For China derivatives market access and more market information please contact sherry_ustc@163.com