FTSE Russell to include Chinese sovereign bonds in its flagship bond index from starting later this year

This will prompt further large inflows into China.

  • Chinese government bonds (CGBs) will be included in the FTSE World Government Bond Index (WGBI) from the end of October
  • will be phased in over three years
  • Chinese government bonds were previously included in index suites from JPMorgan and Bloomberg Barclays, but FTSE WGBI inclusion is expected to have a larger effect due to the size of passive flows tracking it

The phase in will be over a 36 month period, which will slow the inflows to China, they will still be large but not as large as they would be over a quicker phase in. 

Source

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