China Revamps $12 Trillion Bond Market to Lure Foreign Investors
- New rules pave way for more overseas funds to trade onshore
- Inflows would support the yuan, ease credit conditions
Chinese one-hundred yuan banknotes .
Photographer: Bloomberg/Bloomberg
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China is stepping up the pace of reform in its $12 trillion bond market, seeking to lure more foreign investment as the yuan slumps and threats to economic growth increase.
Over the past few weeks, authorities have announced a wave of new rules designed to help the nation’s bonds gain entry into major international indexes. China’s central bank has also eased restrictions on credit-ratings companies, while the cabinet has instructed officials to more quickly unify a market with multiple regulators and trading venues.