FTSE Russell to Include China in Global Bond Index

The video discusses the inclusion of Chinese government bonds in major global indices, highlighting its significance and the expected increase in foreign inflows. It details the current state of foreign investments in China's bond market, emphasizing the yield premium and yuan stability. The video also outlines measures China has implemented to attract foreign investors, such as easing capital controls, increasing access for institutional investors, and extending trading hours.

What is the expected increase in foreign inflows into China's bond markets due to the inclusion in global indices?

• 90 billion U.S. dollars

• 110 billion U.S. dollars

• 70 billion U.S. dollars

• 50 billion U.S. dollars

What percentage of China's government bond holdings is currently owned by foreign investors?

• 7%

• 1%

• 3%

• 5%

What is the approximate size of China's bond market?

• $10 trillion

• $12 trillion

• $14 trillion

• $16 trillion

Which of the following is a change made by China to attract foreign investors?

• Easing capital controls

• Limiting access for institutional investors

• Reducing bond yields

• Increasing taxes on foreign investments

What has China done to facilitate independent credit assessments?

• Reduced the number of rating agencies

• Increased government control over ratings

• Given licenses to agencies like Fitch and S&P

• Banned foreign rating agencies