CCTV News:Since April 1st, China government bonds and policy bank bonds denominated in RMB have been officially included in the world’s major bond index — — "Bloomberg Barclays Global Composite Index" means that the internationalization of China’s bond market has taken an important step, which is another important milestone for China to integrate into the global financial system after the RMB was included in the IMF’s "SDR basket".
According to Bloomberg, the specific inclusion of China bonds will be completed step by step within 20 months. In the first month, China bonds will account for 5% of the index, and then it will increase by 5% every month, and it will be fully included in 20 months.
After being fully included in the "Bloomberg Barclays Global Composite Index", RMB bond assets will account for 6.03% of the total market value of the index, making it the fourth largest monetary bond in this index after the US dollar, the euro and the Japanese yen.
Data show that China’s bond market is 86 trillion yuan, making it the third largest bond market in the world, among which, international investors hold about 1.8 trillion yuan.
After China bonds are included in the world’s major bond indexes for the first time, it will attract more and more foreign investors to participate in the China bond market, increase the liquidity of the bond market, and bring sustained and strong allocation power to the domestic bond market. The industry predicts that the full inclusion of the index will bring at least $100 billion in capital inflow to China every year.
Bloomberg Barclays Global Composite Index
"Bloomberg Barclays Global Composite Index" is one of the most important fixed income reference benchmarks in the world, and it is one of the three most important bond indexes in the world. The other two indexes are "JPMorgan Chase Bond Index" and "Citigroup Bond Index".
At present, the total assets covered by the Bloomberg Barclays Global Composite Index are as high as 54 trillion US dollars, and the main currencies of the index components include US dollars, euros, Japanese yen and British pounds.
China’s bond market is increasingly attractive internationally.
In recent years, China’s bond market has been continuously opened to the outside world, the channels for foreign investors to allocate China’s bond assets have been gradually broadened, the number of foreign investors entering the market and the transaction scale have increased steadily, and the level of interconnection between domestic and foreign bond markets has been effectively improved, which has made China’s bond market increasingly attractive internationally.
In the long run, the inclusion of "Bloomberg Barclays Global Composite Index" is the first step for China bonds to be included in the world’s major bond indexes, which also provides an implementation model for the other two major global bond indexes to be included in the China component. Many international experts believe that China’s bond market still has great development potential, and it is expected to attract more overseas investors to allocate bonds in China market in the future. The further development and opening-up of China’s bond market will benefit China and the global economy, including better serving the growth of the real economy and promoting the diversification of global asset allocation.