China’s decision to allow a select group of global investors to trade bond futures has raised expectations for deeper reforms to boost the appeal of the world’s second-largest debt market.
Institutions including JPMorgan Asset Management and Eastfort Asset Management expect a slow pickup in activity after Beijing said last month those under its Qualified Foreign Investor scheme can now hedge cash bonds with the derivatives. They cited constraints such as restricted use of the product, limited trading hours and segregated investment channels.