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Official Inclusion of CGB into FTSE Russel Flagship Index— Another Milestone to Set Stage for RMB Internationalization

31 March 2021

Highlights of the Month


On 29 March 2021, FTSE Russell released the FTSE Fixed Income Country Classification Announcement. Effective 29 October 2021, Chinese Government Bonds’ (CGB) inclusion will be phased into FTSE World Government Bond Index (WGBI) over a period of 36 months. 47 CGBs with an outstanding amount of close to CNY 9tn would enter FTSE WGBI, comprising 5.25% of the index on a market value weighted basis.

In March, Bond Connect trading remained very active. Average daily turnover (ADT) stood at RMB 24.8 billion and monthly trading volume accumulated to RMB 570.3 billion, up 20% and 84% respectively from the previous month. Chinese government bonds and policy financial bonds were investors’ major focus, accounting for 42% and 38% of monthly trading volume respectively.

On 17 March 2021, BCCL and ANZ co-hosted an online event "Will RMB become the next USD?". Experts from PBoC, IMF, AllianceBernstein, PIMCO, ICBC (Asia) Limited, ANZ & BCCL shared their unique views on China economic prospects, China bond market investment value and RMB currency outlook. It attracted over 290 participants from diverse backgrounds, ranging from banks to investment management firms and securities houses from 21 jurisdictions with very positive feedback.

BCCL also hosted “Zooming into China's Bond Market” mini seminar in March, featuring Citic Securities on “China’s Macro and Fixed Income Market Outlook” for a deep-dive into China macroeconomics, monetary and fiscal policies.

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Primary Market

In March, PMIP disclosed the pre- and post-issuance information of 258 primary bonds including PFBs, NCDs, MTNs, financial bonds, enterprises bonds, tier-2 capital bonds, ABSs and financial commercial papers.