Highlights from the April report

  • The internationalization of China’s $8 trillion bond market continues at a steady pace on the back of tangible efforts to liberalize the onshore investment environment. Onshore government bonds will now be included in a selection of major regional indexes, such as Citigroup’s Emerging Markets Government Bond Index (EMGBI), Asian Government Bond Index (AGBI) and Asia Pacific Government Bond Index (APGBI).
  • China’s treasuries appear relatively steady and reliable, consistently yielding between 3.5 and 4 percent over the past 10 years. In comparison, treasuries from other emerging markets are much more volatile.
  • In March, China’s premier Li Keqiang told the National People’s Congress that protecting the country’s sprawling financial system from excess leverage is a major priority, on par with economic growth. On that basis regulations around capital raising are increasing.

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