Index-linked $100b inflows may spur onshore yuan bonds

Foreign investors deepened their participation in China's onshore bond market in the first quarter of this year, in anticipation of the market's inclusion in a key global index from April 1.

Market mavens expect foreign capital inflows to remain steady this year. Impact of this on the market performance may be limited in the short term but could help improve efficiency in the long term.

In the first quarter, turnover of overseas institutional investors in China's onshore bond market reached 919.1 billion yuan ($137 billion), up by more than one-third year-on-year, according to the China Foreign Exchange Trade System.