A woman and child walk past the People’s Bank of China building in Beijing on March 4. The inclusion of Chinese bonds in global indices is helping integrate Chinese financial assets into international capital markets, underpinned by domestic reforms aimed at boosting liquidity and transparency. Photo: Bloomberg A woman and child walk past the People’s Bank of China building in Beijing on March 4. The inclusion of Chinese bonds in global indices is helping integrate Chinese financial assets into international capital markets, underpinned by domestic reforms aimed at boosting liquidity and transparency. Photo: Bloomberg
A woman and child walk past the People’s Bank of China building in Beijing on March 4. The inclusion of Chinese bonds in global indices is helping integrate Chinese financial assets into international capital markets, underpinned by domestic reforms aimed at boosting liquidity and transparency. Photo: Bloomberg
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

China is right to be cautious about opening up its bond market

  • The liberalisation of China’s capital account is an acutely sensitive issue for Beijing, mainly because of the Communist Party’s innate desire for control
  • The global policy landscape has changed sharply in the past decades, and there is plenty of evidence that free capital mobility exacerbates financial crises

A woman and child walk past the People’s Bank of China building in Beijing on March 4. The inclusion of Chinese bonds in global indices is helping integrate Chinese financial assets into international capital markets, underpinned by domestic reforms aimed at boosting liquidity and transparency. Photo: Bloomberg A woman and child walk past the People’s Bank of China building in Beijing on March 4. The inclusion of Chinese bonds in global indices is helping integrate Chinese financial assets into international capital markets, underpinned by domestic reforms aimed at boosting liquidity and transparency. Photo: Bloomberg
A woman and child walk past the People’s Bank of China building in Beijing on March 4. The inclusion of Chinese bonds in global indices is helping integrate Chinese financial assets into international capital markets, underpinned by domestic reforms aimed at boosting liquidity and transparency. Photo: Bloomberg
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Nicholas Spiro

Nicholas Spiro

Nicholas Spiro is a partner at Lauressa Advisory, a specialist London-based real estate and macroeconomic advisory firm. He is an expert on advanced and emerging economies and a regular commentator on financial and macro-political developments.