“China is the third biggest bond market in the world, and it is underrepresented in the global bond indices. But that’s going to change soon,” Seaman told FSA.
In March, Citi announced that it would include China in its emerging market and regional government bond indices, as reported. Its three indices, the Emerging Markets Global Bond Index, the Asian Government Bond Index and the Asia Pacific Government Bond, will include Chinese government bonds starting in February next year.
Besides Citi, Bloomberg Barclays also launched two new indices to include Chinese sovereigns: the Global Aggregate + China Index and the Emerging Market Local Currency Government + China Index.