Goldman Says U.S. Investors Warming to Chinese Bond Market
- U.S. institutions encouraged by Bond Connect, index inclusions
- Sees worries China bond market heft will drain EM liquidity
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U.S. investor interest in China’s bonds has seen a “notable improvement” as the market is being steadily opened up to foreigners, according to Goldman Sachs Group Inc.
The launch of Bond Connect in July last year, coupled with China’s inclusion in the Bloomberg Barclays Global Aggregate Index from April next year, has served to pique their interest over the last 12 months, Goldman analysts Danny Suwanapruti and Andrew Tilton wrote in a note Wednesday, following a visit to meet U.S. institutional investors.