Standard Chartered China unit said it had become the first foreign bank to trade treasury bond futures in the country which is deregulating capital markets, reports Reuters. The move comes as China steps up efforts to draw global investors amid months of foreign money outflows from its $20-trillion bond market.
In a statement on Wednesday, Standard Chartered Bank (China) said it had completed its first treasury bond futures transaction in China, with the permission of regulators.
Treasury bond futures are a key tool to manage interest rate risks, and China’s opening-up of the market will allow foreign investors to better participate in its onshore bond market and promote yuan internationalisation, the bank said.