Up close with the China bond market

The China Onshore Bond Market is now the third largest bond market in the world after the United States and Japan. Last year, the People's Bank of China (PBOC) introduced a direct route for foreign investors to access the China Interbank Bond Market (CIBM), which offers investors the ability to access onshore Renminbi fixed income securities in a more flexible manner.

BNY Mellon's latest paper provides an overview of the CIBM with a focus on the various potential opportunities this direct access presents to investors and managers.

Key highlights of the paper include:

  • CIBM accounts for over 90% of the onshore bond market in China.
  • Foreign ownership in CIBM is small, representing less than 2% of the outstanding value. This has been largely due to the restricted access applicable to foreign investors.
  • This new direct access route for foreign investors, however, simplifies and expedites the entry process for foreign investors and only requires registration with the PBOC.

Read the full paper to explore these points in depth.

The Bank of New York Mellon Corporation published this content on 26 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 May 2017 05:45:25 UTC.

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