China News Service, Beijing, October 30 (Reporter Zhao Jianhua) China’s government bonds were officially included in the FTSE Global Treasury Index (WGBI) on the 29th.
This marks that after being included in the Bloomberg Barclays Global Aggregate Index in 2019 and the JPMorgan Chase Global Emerging Markets Government Bond Index in 2020, Chinese government bonds have been included in all three major global bond indexes, reflecting the international community’s reform of the Chinese government bond market Recognition of open results.
The Ministry of Finance of China stated that for a long time, it has adopted multiple measures to vigorously promote the process of opening up the treasury bond market and promote the sustained and healthy development of the treasury bond market.
——Strengthen the construction of the national debt primary market, gradually optimize the maturity structure of national debt, announce the national debt issuance plan in advance, and continuously improve the transparency of national debt management; all book-entry national debt is issued through electronic bidding, and market-based issuance has reached the world's advanced level; actively attract foreign investment The bank joins a government bond underwriting syndicate and grants foreign investors tax incentives and other national treatment.
——Continue to promote the improvement of the liquidity of the national debt market, adopt the renewal and pre-issuance technology of national debt, establish a support mechanism for national debt market making, and improve the construction of the national debt futures and other derivatives market. The operating efficiency of the national debt market continues to improve, and the liquidity is increasing year by year. The turnover rate of account-type treasury bonds reached 2.38, ranking among the top in Asia.
——Pay attention to the construction of the yield curve of government bonds. Since 2014, the Ministry of Finance has officially compiled and published the yield curve of key maturity government bonds on the portal website. Since then, it has been continuously extended and optimized to the short and long ends. Currently, the yield curve of China's government bonds completely covers 3 With major maturities ranging from months to 30 years, we will strive to give full play to the benchmark pricing function of the Treasury bond yield curve.
——Improve the level of cross-border services for the infrastructure of the bond market, work with relevant departments to expand foreign investment channels such as Global Connect and Bond Connect, and continuously optimize the process of opening and settlement of government bonds, greatly improving the convenience of foreign investment in the market.
The relevant person in charge of the Ministry of Finance stated that this year marks the 40th anniversary of the resumption of national debt issuance. The next step is to continue to implement preferential tax policies for foreign investment in the domestic bond market, improve risk prevention mechanisms, and further promote foreign participation in the Chinese bond market in an orderly manner, and promote higher quality in the national bond market. Open to the outside world and create a safe and efficient large-country treasury bond market that matches the size of China's economy.
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