PBOC grants many foreign financial firms free access to China bond market

The People’s Bank of China has announced that most types of overseas financial institutions will be able to invest freely in China’s interbank bond market without the need for quotas, Bloomberg reported, citing a statement on the central bank’s website. The market, which accounts for the vast majority of China’s debt, will now be open to commercial lenders, insurance companies, securities firms and asset managers, though hedge funds were not included. “Many foreign investors will be interested in coming onshore as China’s bond yields are higher compared with other nations,” said Iris Pang, a senior economist for Greater China at Natixis SA.