China's Bond Market and Global Financial Markets

December 7, 2018

Preview Citation

Format: Chicago

Eugenio M Cerutti, and Maurice Obstfeld. China's Bond Market and Global Financial Markets, (USA: International Monetary Fund, 2018) accessed September 18, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

A cross-country comparative analysis shows that there is substantial room for further integration of China into global financial markets, especially in the case of the international bond market. A further successful liberalization of the Chinese bond market would encompass not only loosening bond market regulations, but also further developing of other markets, notably the foreign exchange market. Even though the increased integration of China into international capital markets would increase its exposure to the global financial cycle, the costs in terms of monetary autonomy would not be large given China’s size and especially under a well-articulated macroeconomic framework.

Subject: Bonds, Currency markets, Emerging and frontier financial markets, Financial institutions, Financial markets, Securities markets, Stock markets

Keywords: Bond market, Bonds, China, China's bond market, Currency markets, Dollar, Emerging and frontier financial markets, Global, Global bond bond market, Globalization, Market, Market Integration, Non-profit institution, Securities markets, Stock market capitalization, Stock markets, U.S. dollar, WP, Yield, Yield differential

Publication Details

Pages:

17
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2018/253
Stock No:

WPIEA2018253
ISBN:

9781484377475
ISSN:

1018-5941

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