China is set to integrate its interbank bond and exchange bond markets. Five market experts share their thoughts on the move.
Big fixed income investors will see the newly approved China-Hong Kong bond trading link as inferior to other access channels, though smaller players should find it useful, say industry experts.
Citi says mainland debt is now eligible for its EM and regional government bond indexes, but has not given a time frame for inclusion, sparking more debate among fund managers.
The fund house's Asia head of fixed income, Ashley Perrott, suggests that waiting on China's inclusion in global bond indexes is a red herring, as his firm continues its push onshore.
Kimberley Stafford takes over a business that has ambitious plans, including establishing a China presence and building a regional retail business, in a testing environment.
A bond-trading link between Hong Kong and China is unlikely to attract strong retail flows and could distract from the opening of the mainland interbank debt market, says the association's CEO.
The Chinese asset manager is looking to feed demand from its parent insurance firm for foreign private assets, and Australia is attracting more interest amid uncertainty over the UK and US.
The hedge fund giant and three other asset managers – Aberdeen, AllianzGI and BNP Paribas Investment Partners – have been approved to trade China's interbank bond market.
International fund houses have received further clarity on investments into China's interbank bond market, say sources, but central banks remain the biggest drivers of fast-rising inflows.
The Asia-Pacific head of the US fund manager says China's changing regulatory environment, most notably the opening of its debt market, is likely to lead the firm to set up onshore.
Most applications are coming from European and US asset managers, with one firm planning to register 300 funds to invest in the market, CIBM settlement agents tell AsianInvestor.
Invesco aims to directly invest in China's interbank bond market this year, says its Asia-Pacific head of fixed income. The firm expects to see up to $400 billion in flows from fund managers alone.