The credibility of domestic credit ratings and a lack of hedging tools remain some of the challenges for China to develop a truly international bond market, FinanceAsia's inaugural bond connect survey reveals.
The Shanghai-London scheme expected to launch this year could help local Chinese investors turn their portfolios into more global ones with less regulatory and forex risk.
Despite the introduction of Bond Connect last year, Beijing still has hurdles to clear if it is to attract more meaningful foreign participation to its debt market.
Even after Bond Connect, simplified rules and better hedging tools are needed for more meaningful foreign participation in the $9 trillion market, a conference hears.