Template-Type: ReDIF-Article 1.0
Author-Name: Zsanett Sütő
Author-Workplace-Name: Budapest Business School, Magyar Nemzeti Bank
Author-Email: sutozs@mnb.hu
Author-Name: Tamás Tóth
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: tothtam@mnb.hu


Title: Key features of the Chinese bond market

Abstract: In the 21st century, China ranks among the global leaders based on quantitative
factors, not only from a real economy perspective but also from a financial one. It
is the largest exporter and one of the biggest economies in the world. Based on the
IMF’s decision, the Chinese currency will be included in the SDR basket containing
the major currencies of the world. Currently, the world’s third largest bond market
is found in China. It is huge both in real economy and financial terms, and foreign
investors are gradually being granted access to this market, at the pace and to
the extent determined by Chinese regulators. The onshore bond market that has
been opening up at an increasing pace recently and the offshore bond market that
will mark its 10th anniversary next year may be uncharted territory for financial
institutions. Entry to the market may be facilitated by gaining information about the
characteristics of the market. This article presents the key features of the Chinese
bond markets from both the issuer and the investor side, examining the individual
market segments as well, and pointing out the opportunities and expected paths of
development on the markets. In addition, we demonstrate how the Chinese bond
markets fit into the political efforts targeting the achievement of global currency
status for RMB.

Classification-JEL: F65, G15, O16
Keywords: China, bond market, dim sum, onshore market, renminbi

Journal: Financial and Economic Review  
Pages: 88–113
Volume: 15
Issue: 2
Year: 2016
File-URL: http://english.hitelintezetiszemle.hu/letoltes/zsanett-suto-tamas-toth-en.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:15:y:2016:i:2:p:88-113