FTSE Russell announced on September 25, 2020 that it will add Chinese government bonds to its World Government Bond Index (WGBI). The reform and opening-up of the Chinese bond market has been pushed forward steadily in recent years. As of end-August 2020, the market was worth RMB112 trillion in terms of its outstanding volume. In particular, RMB2.8 trillion of bonds were held by international investors, registering an average annual growth of 40 percent in the past three years. FTSE Russell CEO Waqas Samad said that Chinese Government Bonds will be added to the FTSE WGBI from October 2021. The Chinese authorities have worked hard to enhance the infrastructure of the government bond market. Pending an affirmation in March 2021, international investors will be able to access the second largest bond market in the world through FTSE Russell’s flagship WGBI. for more details, please read https://qmhedging.blogspot.com/2020/09/pbocchinese-government-bonds-to-be.html
Why should a foreigner invest in something denominated in a currency that is routinely devalued by the State ?