Morgan Stanley estimated on Wednesday that if the Chinese government bond market is included in more important global bond market indexes in the coming year, most emerging countries' public debt market may encounter a capital outflow of $1-20 billion.
JPMorgan Chase and FTSE Russell may announce in September that China will be included in their respective GBI-EM and WGBI Emerging Markets Bond Indexes. Morgan Stanley analyst Min Dai said in the research report that it is estimated that the weight of China's national debt in JP Morgan Chase GBI-EM is about 10%.
“Given the asset management scale of tracking the GBI-EM index is around $300 billion, funds flowing out of other emerging markets and flowing into China could be as much as $30 billion,” Min said.
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