(Yicai Global) Sept. 25 -- Global index provider FTSE Russell will include the sovereign debt of China, which has the world’s second-largest bond market, in the FTSE World Government Bond Index in October 2021.

The exact date of the inclusion will be announced in March 2021, based on a review of recently announced market reforms, the London-headquartered financial information provider said in a statement yesterday. 

FTSE Russell added Chinese government bonds to its watch list in 2018. After that, Chinese authorities have widened overseas investors' access by improving bonds' secondary market liquidity, enhancing the structure of the foreign exchange market, and developing global settlement and custody processes. Next, foreign investors will be able to register a separate legal entity when opening new investment accounts. 

"The Chinese authorities have worked hard to enhance the infrastructure of their government bond market," said FTSE Russell Chief Executive Waqas Samad.

China's bond market spans a scale of USD16 trillion. By the end of August, international investors held CNY2.8 trillion (USD410.7 billion) of those assets, Pan Gongsheng, deputy governor of the central bank, said in the same statement.

"This [foreign investment] fully reflects the confidence international investors have in the healthy long-term development of its [China's] economy, as well as its commitment to further opening up its financial markets," Pan added. 

Editor: Emmi Laine