Investors face balancing act as China bonds join FTSE index

The decision by index provider FTSE Russell to include Chinese sovereign bonds into its flagship index is likely to lead $150 billion of foreign investor assets to flow into the nation’s government debt. However, the inclusion is giving some international investors concern about the impact of considerable political and economic tensions between China and the US. Concerns about China’s restrictive currency and capital controls have already led to major asset owners in Japan to rais…