Japan’s Government Pension Investment Fund (GPIF) said it will not investment in Chinese government bonds, even though FTSE Russell’s World Government Bond Index starts to include them in October. GPIS is the world’s largest pension fund, with total assets of JPY 192T.
Masataka Miyazono, president of GPIF, said, “Chinese government bonds cannot be settled in an international settlement system that can be used for other major government bonds. The market’s liquidity is still limited compared with the size of GPIF’s investment scale. Trading of futures is not allowed for foreign investors.”
