Ever since China embarked on its series of economic reforms in the 1970s, the country’s rapid progress that has placed it among the leading economies of the world has been unparalleled.

It is therefore no surprise that as China embarks on its new phase of capital markets liberalization to go hand in hand with its economic reforms, China’s financial markets too have become the object of international investors’ sustained interest, in a relatively short period of time.

In particular, the fact that China’s bond market is now the third largest in the world from being barely visible on global radar screens a few years ago makes it the ideal candidate to be at the forefront of the Chinese authorities’ market opening initiatives. At the same time, as the renminbi (“CNY”) globalizes, international investors will seek to buy assets denominated in renminbi, while at the same time seeking re-assurance and safety in bonds and other instruments issued by corporations and entities with which these investors are totally familiar, as a means of minimizing credit and other risks.

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