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Asia Times Financial launches news service, China domestic bond index

Asia Times Financial (ATF) today launched news and index services – notably the Asia Times Financial China Bond 50 Index – to provide expert, fast and accurate narratives about key Asian credit markets.

The ATF China Bond 50 Index is a product created by the collaborative strength of Capital Link International and its partners: media platform ATF and Swiss-based AllIndex, the creator of indices and index technology.

“A lack of comprehensive and credible information, liquid benchmarks and ETFs has meant that the international investor community has had to ignore many higher-yielding Asian market sectors,” said Evan Kalimtgis, vice-chairman and Co-CEO of Capital Link International and a founding board member of Asia Times.

China’s corporate bonds have been acutely under-owned by international investors, he said, noting that in an era of zero and negative yields and high currency concentration risks China provides the deepest source of largely-untapped spread income globally.

“The ATF China Bond 50 Index, as the world’s first liquidity-focused, cross-sector Chinese bond index, will be the comprehensive and credible investable benchmark platform that transforms this situation,” he said.

The ATF China Bond 50 Index has a uniquely designed methodology and aims to create a Chinese debt benchmark that will bring transparency and global tradeability to high-yield Chinese onshore fixed-income markets.

Dr Christian Kronseder, CEO of AllIndex, said: “We have put a lot of effort into creating one of the few investable bond indices by getting in touch with virtually everyone in the Chinese bond market to develop a deep understanding about its structure. This is especially important for a large bond market like China. In the end we arrived at a transparent and effective set of selection rules, combining the most liquid and tradeable onshore bonds in a concise set of index constituents. From our point of view, it adds another piece to the puzzle making the Chinese onshore bond market more liquid.”

The need for a tradeable fixed-income China index has never been more acute with the world’s second-largest economy providing a relative safe harbour to stormy global markets.

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