FTSE Russell to include Chinese sovereign bonds in its flagship bond index from starting later this year

This will prompt further large inflows into China.

• Chinese government bonds (CGBs) will be included in the FTSE World Government Bond Index (WGBI) from the end of October
• will be phased in over three years
• Chinese government bonds were previously included in index suites from JPMorgan and Bloomberg Barclays, but FTSE WGBI inclusion is expected to have a larger effect due to the size of passive flows tracking it

The phase in will be over a 36 month period, which will slow the inflows to China, they will still be large but not as large as they would be over a quicker phase in.