The news earlier gave a boost to CNH:
FTSE Russell will add China government bonds to benchmark WGBI index next year
- From October 2021
- World Government Bond Index (WGBI) inclusion
- Final decision will be made in March next year
Deutsche Bank with the implications (this is summary, bolding mine):
- This is the third major index inclusion and marks another milestone in China's onshore bond market opening up to foreign investors.
- Inclusion is expected to attract USD120bn passive inflows from foreign investors next year.
- Supports development of China's market including pricing efficiency, credit differentiations, infrastructure improvement and green finance development.
