CNY: Another milestone in China’s financial market liberalisation

April 1, 2019

SINGAPORE - Today sees formal entry of onshore China bonds into the Bloomberg Barclays Global Aggregate Index, another important milestone in China's financial market liberalisation. ANZ Bank estimates potential foreign bond inflows of US$150 billion from asset managers tracking the Global Aggregate Index over the 20-month phase-in period.

ANZ believes inclusion of China bonds in other major bond indexes is only a matter of time.

"Alongside equity index re-weighting and further FX reserve allocation into RMB, the expected pick-up in foreign portfolio inflows will help offset the narrowing in China's current account surplus and support the yuan," it says. (ATI).