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Bloomberg to include yuan-denominated, Chinese government bonds in its benchmark indices

  • Chinese government debt will be phased into the Bloomberg Barclays Global Aggregate Index beginning in April
  • It is the latest inclusion of Chinese securities in a benchmark index

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Bloomberg’s plan to include Chinese government bonds in its benchmark debt indices will give a boost to Beijing’s push to increase the use of the yuan as an international currency for settlements and trade. Photo: Reuters
Chad Bray

Financial information provider Bloomberg said on Thursday that it will include yuan-denominated, Chinese government bonds in a key global debt index from April, further expanding the importance of yuan as a global currency.

It is the latest effort to increase the exposure of benchmark indices to Chinese securities as Beijing moves to further open up its financial markets and global investors look for additional opportunities to access the mainland markets.

China has been taking steps to open up its financial sector to foreigners. Last week S&P Global Ratings was given formal permission by Chinese officials to open a wholly owned credit rating agency to rate Chinese domestic bonds. Photo: Bloomberg
China has been taking steps to open up its financial sector to foreigners. Last week S&P Global Ratings was given formal permission by Chinese officials to open a wholly owned credit rating agency to rate Chinese domestic bonds. Photo: Bloomberg
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Bloomberg said that yuan-denominated government bonds and policy bank securities would be added to the US$54 trillion Bloomberg Barclays Global Aggregate Index from April and would be phased in over a 20-month period.

Chinese debt will also be eligible for inclusion in the Bloomberg Barclays Global Treasury and Emerging Markets Local Currency Government indices beginning in April.

“Today’s announcement represents an important milestone on China’s path towards more open and transparent capital markets, and underscores Bloomberg’s long-term commitment to connecting investors to China,” Bloomberg chairman Peter Grauer said. “With the upcoming inclusion of China to the Global Aggregate Index, China’s bond market presents a growing opportunity for global investors.”

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