BEIJING, Sept. 4 (Xinhua) -- Chinese policymakers' draft file on foreign institutional investment in the country's bond market outlined the overall systemic arrangement for bond market opening up, according to a research report of China International Capital Corporation (CICC).
On Wednesday, Chinese central bank, China Securities Regulatory Commission and State Administration of Foreign Exchange jointly posted a draft document on foreign institutional investors' investment in China's bond market.
As the CICC report told, the draft file would further facilitate foreign institutional investment in China's bond market.
Currently, spread between China's bond products and overseas bonds remains wide given the not closely pegged monetary policy in China and abroad, which helps attract continuous influx of foreign investment.
When the U.S. dollar is now expected to remain weak in the mid- and long-term, the sluggish U.S. dollar will benefit the stability and appreciation of Renminbi and foreign institutional investors can consider less on the potential foreign exchange risks.
After foreign institutional participation in China's bond market is further unified and regulated in near future, inflow of foreign capital is likely to speed up during September and October, said the CICC report, highlighting that if China bonds are included in the World Government Bond Index (WGBI), a broad index providing exposure to global sovereign fixed-income market, foreign capital inflow would further grow. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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