The Chinese bond market and the second benchmark yield curve that the world needs

The trade war skirmish is dominating headlines, but away from the spotlight a less noisy, but equally important, shift has taken place. In April, China’s yuan-denominated onshore bonds were included in the Bloomberg Barclays Global Aggregate index, and other index providers could follow suit. Citywire talked to Stephen Li Jen, a leading China expert and manager of the Luxembourg investment fund Eurizon Fund - Bond Aggregate RMB Fund, to get his thoughts. “I believe China’s inclusion into global bond indices is similar to its inclusion into the WTO as a full member, some 18 years ago. It’s fair to say that back then there were few people anticipating what could happen two decades later. But China’s inclusion into the global trading system proved to be a historic turning point…”

“Opening-up of the Chinese bond market could give the second benchmark yield curve that the world needs” – Citywire selector, June 2019