(China Alert) Bond index inclusion: Closer than you think

– Bloomberg has created transitional benchmarks for Chinese fixed income.
– Broad bond index inclusion may now be more likely than MSCI’s A-share inclusion.

Update: As the same old questions are starting to pop up about MSCI A-share inclusion this year, Z-Ben Advisors believes managers should also be looking at the other index decision: Chinese fixed income. Bloomberg made a major move toward inclusion by creating two new transitional trackers for Chinese fixed income to enter its global and emerging market (EM) benchmarks. Further details and launch will come in March. This is akin to FTSE Russell’s optional A-share inclusion. The two other large EM index providers, JP Morgan and Citi, may soon follow suit. The hundreds of billions of dollars tracking these indices should soon be focusing on China.

Z-Ben Analysis

China’s fixed income market has been…..

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