This growth dynamic is supported by a stronger investor demand, both locally and externally. Many Pan Asian local currency bond markets are now made easier for foreign investors to access, particular through the use of exchange traded products. The regulatory framework also becomes more welcoming, for example, the expansion of Renminbi Qualified Foreign Institutional Investor (“RQFII”) quota in China. Underpinned by the robust economic growth, the Pan Asia bond market has historically been attracting steady inflows.
^Source: http://www.bis.org/statistics/secstats.htm. Data as of December, 2013.
This article was written by Michele Leung, associate director, fixed income indices, S&P Dow Jones Indices.
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