The recent spate of China bond ETFs offering exposure to onshore debt is reflective of the country’s mammoth presence in the global fixed income market.
Not only is China the world’s third-largest bond market, but its $1.5 trillion corporate bond market is the world’s largest. Chinese companies are expected to absorb a third of global corporate debt needs over the next five years, indicating there could be a robust appetite for ETFs offering exposure to the country’s local commercial paper. [Good Timing for China Bond ETFs]
The ChinaBond Commercial Paper Index is up nearly 38% over the past five years compared to a gain of just 1.55% for the S&P US Commercial Paper Index.
KCNY charges 0.56% per year.
Charts Courtesy: KraneShares
ETF Trends editorial team contributed to this post.