Fund Manager: China’s Bond Market Is Set to Boom

China’s renminbi bonds, which make up only 1.8 percent of global debt capital markets today, could become a far more significant asset class in the years ahead as the nation continues to widen access to foreign investors, says a leading London-based bond fund manager who made his name starting Europe’s first renminbi bond fund back in 2007. 

Chinese authorities launched the China Hong Kong Bond Connect program via the Hong Kong Exchange last July, allowing foreign investors to have direct access to China’s $10 trillion domestic bond market — the third largest in the world after the U.S. and Japan — for the first time.  The program is only six months old but already has allowed foreigners to own a tiny chunk of China’s debt capital market, according to Andy Seaman, a partner and chief investment officer of Stratton Street Capital. 

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