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London Stock Exchange Group welcomes the China Bond Inclusion to FTSE WGBI

Posted: 29 October 2021

Chinese Government Bonds inclusion to the FTSE World Government Bond Index (WGBI)

Chinese Government Bonds (CGB) will be included in the FTSE World Government Bond Index (WGBI) and its derived indexes beginning at the end of October 2021. This inclusion is based on affirmation with members of the FTSE Russell advisory committees and other index users that ongoing reforms to the Chinese government bond market warrant inclusion in the WGBI. The inclusion will occur over a period of 36 months to ensure an orderly transition for markets and investors.

Arne Staal, CEO of FTSE Russell said:

“It is a pleasure and an honour to congratulate China of its inclusion on the FTSE World Government Bond Index. This is a significant milestone for the development of the Chinese government bond market, as well as global investors looking for access to the world’s second largest bond market. The inclusion of China in FTSE’s flagship bond index makes it easier for international investors to add Chinese government bonds to their portfolios, and take advantage of the return and the diversification benefits of the asset class.

The Chinese authorities have worked hard over many years to develop the financial infrastructure, to better meet the needs of these international investment communities. We are proud to continue to evolve the FTSE World Government Bond Index and its flagship index for all the investors, and remain committed to supporting our clients for providing transparency of the full global investment opportunity as it evolves overtime.”

Mr. Pan Gongsheng, Deputy Governor of the People’s Bank of China and Administrator of the State Administration of Foreign Exchange, said:

“The PBOC welcomes the inclusion of Chinese bonds into the FTSE World Government Bond Index. This move shows that international investors are confident in China’s long term economic growth as well as China’s commitment to open up the financial sectors on a continuous basis. By the end of September 2021, international investors held a total of 3.9 trillion yuen of Chinese bonds. Financial market opening-up helps China’s high-quality growth and enables global investors to share China’s development progress. Going forward, the PBOC will continue to work together with relevant parties to further improve supporting policies and institutional arrangement in order to further promote two-way cross-border investment and financing, and provide a more friendly and convenient environment for investors onshore and offshore.”