Screaming for cash, China opens biggest Bond Market to more international investors!

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China allowed more international investors to buy bonds on the nation’s largest debt market and purchase higher-yielding
notes for the first time, as the world’s second-biggest economy develops its capital markets.

Participants in the Qualified Foreign Institutional Investor program are now allowed to buy bonds on the interbank market,
the China Securities Regulatory Commission said in a statement July 27 on its website. Previously, they were restricted to
exchange-listed debt, which is less than 2 percent of the interbank equivalent.

International investors were also permitted to buy bonds of small- and medium-sized companies through private placements,
the regulator said. Such securities typically yield more than their counterparts listed on China’s stock exchanges.

[link to www.sfgate.com]

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