Bloomberg chairman sees rapid growth in China's bond market

SHANGHAI -- Bloomberg LP chairman Peter Grauer said Sunday that China's bond market has grown rapidly and is an increasingly important and vibrant part of global markets.

Speaking via video link at the ongoing Bund Summit in Shanghai, Grauer noted new highs in transaction levels by foreign investors of yuan-denominated bonds and said China's bond market is "coming of age."

He said the shaping of a transparent regulatory environment and the ongoing internationalization of the yuan are positive trends that make China an investible bond market.

It is encouraging to learn that Chinese regulators are working to facilitate wider market development and improved access in derivatives and fintech, among other areas, said Grauer.

He said Bloomberg will be furthering the internationalization push of the Chinese market in November when it completes China's inclusion into the Bloomberg Barclays Global Aggregate Index.

Upon completion, Chinese securities will represent about 6 percent of the index, and local-currency Chinese bonds will be the fourth largest currency component after the US dollar, Euro and Japanese yen, according to Grauer.

"We are encouraged that despite today's unpredictable global climate, China continues to open up its financial markets, presenting enduring opportunities for global investors and Chinese financial institutions," he said.