China bond demand by foreigners surges fivefold

Foreign demand for Chinese bonds is surging in expectation that these securities will be admitted to international bond indices, said Andre de Silva, head of global emerging-market interest-rate research at HSBC. By mid-October, foreign purchases of government and policy-bank bonds had brought the total for 2016 to Rmb174 billion ($26 billion), versus only Rmb35 billion for all of 2015, according to the bank. Foreigners bought Rmb78 billion in September alone. The five-fold incr…