Market Views: Is unifying China’s bond markets a game changer?

International institutional investors are paying increasing attention to China's $13 trillion bond market because of its sheer size, its inclusion in global indices and the yields it can offer. This is despite the fact that the asset class poses various issues, including capital controls, an underdeveloped derivatives market for hedging and liquidity concerns. Bloomberg Barclays included Chinese treasury and policy bank bonds in its Global Aggregate Bond Index in April last year, …