<abstract xmlns="http://www.w3.org/1999/xhtml">

<sec><h3>Research background</h3>
<p>Since 2015, when China opened up its onshore bond markets more substantially, foreign investors have significantly increased their investments in Chinese local currency bonds.</p>
</sec>
<sec><h3>Purpose</h3>
<p>This study aims to examine the effects of foreign participation on Chinese government bond yields.</p>
</sec>
<sec><h3>Research methodology</h3>
<p>This study adopts a robust least squares model and a cointegration model.</p>
</sec>
<sec><h3>Results</h3>
<p>(Greater) foreign participation can significantly decrease 10-year Chinese government bond yields.</p>
</sec>
<sec><h3>Novelty</h3>
<p>There are almost no studies of the benefits and costs of foreign participation in Chinese bond markets. The conclusion drawn from this study is the first of its kind in the academic literature on the Chinese market, and contributes to knowledge about foreign participation in local currency bond markets.</p>
</sec>
</abstract>

Research background
Since 2015, when China opened up its onshore bond markets more substantially, foreign investors have significantly increased their investments in Chinese local currency bonds.

Purpose
This study aims to examine the effects of foreign participation on Chinese government bond yields.

Research methodology
This study adopts a robust least squares model and a cointegration model.

Results
(Greater) foreign participation can significantly decrease 10-year Chinese government bond yields.

Novelty
There are almost no studies of the benefits and costs of foreign participation in Chinese bond markets. The conclusion drawn from this study is the first of its kind in the academic literature on the Chinese market, and contributes to knowledge about foreign participation in local currency bond markets.

The Effects of Foreign Participation on Chinese Government Bond Yields

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

{"article-title":"The Effects of Foreign Participation on Chinese Government Bond Yields"}

Research background
Since 2015, when China opened up its onshore bond markets more substantially, foreign investors have significantly increased their...

The Effects of Foreign Participation on Chinese Government Bond Yields

Published Online: Dec 09, 2023

Page range: 222 - 240

Received: Mar 05, 2023

Accepted: Nov 25, 2023

DOI: https://doi.org/10.2478/foli-2023-0028

Keywords
Chinese government bonds, yields, foreign participation, foreign investment, robust least squares model, cointegration

© 2023 Kerry Liu, published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

The Effects of Foreign Participation on Chinese Government Bond Yields

Published Online: Dec 09, 2023

Page range: 222 - 240

Received: Mar 05, 2023

Accepted: Nov 25, 2023

DOI: https://doi.org/10.2478/foli-2023-0028

KeywordsChinese government bonds, yields, foreign participation, foreign investment, robust least squares model, cointegration

© 2023 Kerry Liu, published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Keywords
Chinese government bonds, yields, foreign participation, foreign investment, robust least squares model, cointegration