China Opens Its Bond Market To International Investors

Foreign Policy on the latest step on China's road to financial market liberalization.

China Opens Its Bond Market To International Investors

Now, investors have access to $9.7 trillion in Chinese debt; it’s the third largest bond market behind the United States and Japan. Bonds worth $1 billion were purchased Monday.

Even if the liberalization move is welcome, it is limited. For now, it’s a so-called northbound scheme, meaning foreign investors have access to Chinese bonds, but Chinese investors don’t yet have access to bonds traded in Hong Kong.