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China $90 Trillion worth Bonds for Foreign Investors :


After the a long wait now it happened and China make its official  entry for the foreign investors in the bond market.  The Bond trading process is operational for foreign investors with the name given to bond as “ Contact Bond”.
That’s move taken to bring the foreign investors in the chines financial derivatives market. The Net worth of the Contact Bond is approximately  $ 90.00 Trillion. There market is the world third biggest market but only 2% of bonds in the possession of the foreign investors.
The move to open the chines market for the foreign investors is started on March 01 and Now when the Hong Kong completes its 20 Years under the China. The Contact bond were issued on that date. The reason behind to issue the bonds is to reduce the cash out flow and increase the cash inflow in the chines economy and give boom to its derivatives and financial market through this activity.
The investors like this kind of bond from them due to two main reason one is that the bond profit issued at the par stated rates and the second is when the bond is mature its period the invest gets his complete invested amount back. Initially the bond can be purchased by the Chines bond banks, Hong Kong fund managers and through the insurance companies. The date  for the investment is not announced till yet. But the #HSBC Holding and the Bank of China Assets Management Unit both  are the initially start  their investment and business in these bonds.
The Foreign investors were more querulous  before to make the investment in the chines derivative markets because the China Currency Yuan’s is not stable and a system like the financial derivatives and stocks is currently dissolved. The United States Stock Index  were agreed to include the Chines local trading t in the last month in their market.  Currently the Chines Yuan’s exchange rate with respect to the dollar is 1$= 6.5Yuan’s approx.

But over all that’s a very positive and constructive effort from China to make its cash inflows more better and giving more strength to its Financial Stock and derivatives market through the Contact Bonds. With thanks to #BBC URDU Service.

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