China's $9tn bonds market opened to overseas traders

Jul 03, 2017, 9:06 AM EDT
(Source: PROJason Howie/flickr)
(Source: PROJason Howie/flickr)

China has launched a long-awaited scheme, called the Bond Connect, which will allow foreign investors to trade in its $9 trillion bond market that currently has just two percent of foreign-owned bonds.

The latest effort to globalize Chinese markets comes two years after Beijing set up a two-way stock trading link between Hong Kong and Shanghai, writes The Guardian.

Apprehensions over the stability of Chinese currency, Beijing’s perceived sluggishness in carrying out financial reforms and the questions about the credibility of credit ratings for the Chinese bonds have, in the past, kept the overseas investors away from the market, notes the BBC.