Shanghai: China on Monday opened up its $10 trillion bond market to foreign investors, in the latest liberalization move by Beijing as it seeks to draw in more fund flows as it battles slowing economic growth. The new conduit comes via Hong Kong, where “qualified investors” will be able to buy debt in China—the world’s third-largest bond market after the United States and Japan. Their statement said the “bond connect” arrangement between the Hong Kong and mainland Chinese markets went into “experimental operation” from Monday. The growing Chinese bond market has been virtually out of reach for foreign investors, who currently hold less than 1.5% of bonds issued in China, according to estimates by Bloomberg. The new bond connect scheme, however, currently only allows foreign investors to buy Chinese debt.

Source: Mint July 03, 2017 09:45 UTC