China bond investment accelerates and broadens

Foreign participation in China’s domestic bond market is accelerating, and the pace is likely to pick up even more during the second half of the year, ready for the proposed launch of the Bond Connect scheme by the end of 2017. Moreover, the range of participants is broadening and a clear pattern is emerging in respect of the types of debt being traded. Market participants believe China’s inclusion in more major bond indices, a stabilising renminbi/dollar exchange rate an…