March 29, 2019

Asia Takeaway: David Beale on China’s inclusion in the Bloomberg Barclays Aggregate Bond Index

On Monday, April 1st, China joins the Bloomberg Barclays Global Aggregate index, representing “the single largest rebalancing in this index’s history”

In this Asia Takeaway, APAC Co-Head of CIB’s Institutional Client Group (ICG) David Beale, tells us why China’s inclusion in the Bloomberg Barclays Global Aggregate Bond Index is such a significant market milestone.

With 2.5 trillion US dollars in international assets tracking the index, China’s inclusion is a major step to increasing global investor access to China fixed income.

“China will gradually reach just over 6% of the index and will be the fourth largest currency component behind the US dollar, Euro and Japanese Yen,” he said.

China’s 12 trillion US dollars domestic bond market joins the index on April 1. “This represents the single largest rebalancing in this index’s history,” added Beale.