- JPMorgan Chase (NYSE:JPM) plans to add Chinese government debt to its indexes, after three years of reviewing the bonds for inclusion and following a similar move by Bloomberg LP.
- The validation of the country's assets is likely to attract more money from abroad.
- The bank will add Chinese bonds to various indexes starting Feb. 28, 2020, with the biggest impact expected in its emerging-markets indexes.
- One example is JPMorgan's flagship Government Bond Index-Emerging Markets Global Diversified index, which is tracked by investors managing an estimated $202B in funds.
- Nine Chinese government bonds with maturities ranging from 5 to 10 years will be added to that index.
- China's weight will be capped at 10% of the GBI-EM global diversified and narrow diversified indexes.
- ETFs: EMB, EMLC