China's plans for bond market domination

ON ASIA

China has made a series of reforms to liberalise the renminbi and could free up its bond market. Ing's Peter Sengelmann explains the implications for investors.

China. The land of reform. Policymakers are working hard to reshape their country’s future for the better. The reform package approved at the third plenum Communist Party meeting in November was impressive in terms of scope, depth and expected impact. An important part of these reforms includes liberalising the capital account and allowing greater flexibility in its exchange rate regime. This process started back in 2002, when China began to allow foreigners to participate in its onshore capital markets under the Qualified Foreign Institutional Investor (QFII) programme. In 2010, Chin...