Ethan's Economics and Finance Views

 FTSE Confirmed to Include China Government Bonds to its WGBI Index New Sharing In early September last year, FTSE was planned the decision to include some China Sovereign Bonds to its flagship index so that more global investors can enter the China's Markets to find out more valuable investment opportunities. In 30th March, 2021, FTSE continuous to plan ahead to include the China Government Bonds to its WGBI Index, the benchmark to indicate the world government bonds performance.  FTSE Russell has approved for Chinese sovereign bonds to be included in its flagship bond index around this year (2021), setting the stage for billions of dollars of inflows into China Market. It is estimated that the inclusion would be done in around 3 years. FTSE asserts that the inclusion of the China Sovereign Bonds can reflects the robust index governance process and regular engagement with global investors, regulators and other key market participants. At the same time, China government als...

 MSCI and FTSE delisted China Oil Company CNOOC today (26/1) and tomorrow (27/1) Daily News Sharing After China Mobile Limited (941.HK) ,  Semiconductor Manufacturing International Corp (981.HK), and C hina Telecom (728.HK), global indices like MSCI and FTSE announced that they would delist CNOOC (883.HK) in its index because of the executive order of the U.S.. Today, MSCI finished its rebalancing in MSCI China All Shares Indexes, more than 100 billion At the same time, FTSE would delist CNOOC (883.HK) tomorrow in its FSTE China A50 Index . After the effect of delisting, the delisting is not affected the stock market, but also affected the bond market. JP Morgan points out that the banning  on China firms could affect $60 billion of bonds. JP Morgan  estimated that around “US$55-60 billion of bonds would be affected if the Treasury acts.” The investment bank also calculated that $1.3 billion would outflows in China Market because institutional investors are forced ...

How the incision of China Government Bonds in FTSE Russell Indices Bring out Capital Inflow of China Recently, FTSE Russell had delisted some China Stocks like SMIC and Hikvision in its China A50 index because of the U.S. sanction measures. After the delisted, at least $10 billion flow out in the stock market. However, FTSE Russell is now planning to include China Government Bonds in its global index. According to Goldman Sachs, at least $10- $15 billion US Dollars flow into the China Government Bonds Market each month, an increase of $5 billion each month. The analyst points out that other global indices like  Bloomberg Barclays Indices and JP Morgen's GBI-EM index are also planning to include more China Government Bonds in its Index. Therefore, from my perspective, a more potential inflow of capital is planning to enter the China Bond Market. As China government bonds provide a higher yield to the investor, foreign investors are looking for more channels to get into China...