Many milestones have been passed since paramount leader Deng Xiaoping announced China’s “Open Door” policy in 1978. Since that historic pronouncement, lifting more than 800 million people out of poverty, according to World Bank analysis,1 has been the country’s greatest achievement. The magnitude of China’s anti-poverty success has been so remarkable that everything else seems prosaic by comparison. Policies directed towards raising living standards have been prioritised and so financial markets liberalisation has taken a bit of a back seat and been marked by incremental change.
For fixed income investors, the advent of Bond Connect last July was a signature moment underscoring the country’s desire to eventually become a full participant in the global financial system.
Read the full China Bond paper
1 World Bank overview of China, April 19, 2018 - http://www.worldbank.org/en/country/china/overview
A fine balancing act