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BNP Paribas joins China Interbank Bond Market

  • 09.12.2016

The People’s Bank of China has acknowledged BNP Paribas’ filing for five funds on behalf of Aberdeen Asset Management, including two for UK-based funds. The European filings are understood to be the first from beyond the region of Asia Pacific and signal a widening in scope for the CIBM as it approaches the one-year mark since its opening (quota-free) in February 2016.

China, world's third biggest bond market

China is the world’s third biggest bond market, and overseas investor interest is expected to grow in line with the country’s financial market liberalisation agenda.

CG Lai, Head of Global Markets, Greater China, BNP Paribas, said: “We are seeing growing appetite from foreign investors to participate in China’s Interbank Bond Market, following the Renminbi’s inclusion into the IMF’s Special Drawing Rights basket and its potential inclusion in global indices. Investors are speeding up their preparation to enter this market. BNP Paribas is well equipped to accompany investors in their efforts to tap into China’s growth opportunities.”

 While the CIBM has been widely accessed by sovereigns and supranational investors since February, Aberdeen and other asset managers are relative newcomers to the space. 

“The opening up of this market, which accounts for approximately 90% of the total capitalisation of China’s domestic bond market, has unlocked many new opportunities for investors,” said Philippe Benoît, Head of Asia Pacific, BNP Paribas Securities Services.

bnp paribas is well equipped to accompany investors in their efforts to tap into China's growth opportunities.