Chinese sovereign bonds have won inclusion into FTSE Russell’s benchmark bond index a year after they were rejected.
The index compiler owned by the London Stock Exchange Group said the debt would be added to its flagship World Government Bond Index. The inclusion will start in October 2021, according to a statement after U.S. markets closed Thursday.
The inclusion gives foreign investors yet another way to invest in Chinese debt and should prompt inflows into the world’s second-largest bond market. Goldman Sachs estimated it would attract $140 billion over the 12-month phase-in period. FTSE Russell becomes the last of the three main index compilers to add Chinese debt after Bloomberg Barclays and JPMorgan Chase & Co. Bloomberg Barclays is owned by Bloomberg News parent Bloomberg LP.
“This is a new milestone,” said Xing Zhaopeng, an economist at…