China opens up interbank bond market to hedge funds

Private securities fund companies have been given the green light to enter China’s interbank bond (IBB) market. The liberalisation comes as part of government attempts to reform the bond market by diversifying the pool of eligible investors. However, private managers’ limited knowledge of fixed income and the difficulties they face in holding onto investors hungry for high returns could make for a slow entry into the market. Eligible private securities fund managers – China’s …