China plans to allow wider foreign investors access to a crucial financing instrument, removing a major obstacle to foreign demand for the world's second-largest bond.
Chinese authorities are actively considering measures to improve risk hedging and liquidity management tools for foreign bond investors, including enabling trading in repo agreements, or repo. The inability of global investors to use repo agreements to benefit from increased exposure is a major barrier to a popular program to trade China's domestic bonds, known as Bond Connect."
Source (Asharq Al-Awsat Newspaper, Edited)
