GPIF Says No to Chinese Government Bonds

Posted on 09/30/2021

Japan Government Pension Investment Fund (GPIF) made the key decision to not include yuan-denominated Chinese government bonds in its portfolio. The Japanese pension giant made the move after FTSE Russell decided to include Chinese government bonds in its benchmark FTSE World Government Bond Index (WGBI) in March 2021. The WBGI change will be occur over a 3-year period, starting October 2021. The GPIF manages roughly 20 trillion yen using the WGBI.

GPIF currently has no exposure to yuan-denominated Chinese government bonds. If the GPIF follow suit to the WGBI index, bond investments in Chinese government bonds would total about 1 trillion yen.

However, some large Japanese insurers have started to purchase mainland Chinese bonds.

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