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Containers are seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone
FTSE Russell held off on adding Chinese government bonds to its key benchmarks, saying international investors still had important reservations about investing in the country’s debt markets.
The move contrasts with rulings from JPMorgan Chase & Co. and Bloomberg LP, which are both adding Chinese bonds to some widely followed gauges.
FTSE Russell hailed significant progress in opening up China’s bond markets, citing changes such as an end to quotas under the Qualified Foreign Institutional Investor program.
But the index compiler said investors wanted “improvements to secondary market liquidity, and increased flexibility in [foreign-exchange] execution and the settlement of transactions” before it upgraded China’s market accessibility rating, which determines index inclusion.
An expanded version of this story is available at WSJ.com
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