The Chinese government needs to raise capital to get the Chinese economy back on its feet, and therefore it is seen as a good move to allow foreign investors such as central banks, mutual funds, commercial banks and pension funds to buy bonds, according to a statement from China’s central bank.
Bonds are traded in two markets in China. On the one hand, foreign investors have been allowed to trade since 2016, while the other, which accounts for a smaller share, has been closed to foreigners until now. Trading for foreign investors there will begin on June 30.