Pension fund to stay out of Chinese govt bonds

Masataka Miyazono, president of GPIF, cited three reasons why the the fund thinks investing in Chinese bonds would be risky for a large investor like the GPIF, in minutes of its board meeting held in July. The minutes were published yesterday.

TOKYO: Japan’s Government Pension Investment Fund (GPIF) will not invest in Chinese government bonds due to settlement and liquidity issues, even after they will be included in a major bond index next month, it said yesterday.

The world’s largest pension fund, with total assets of 193 trillion yen (US$1.729 trillion or RM7.24 trillion), said it will stay out of yuan bonds after FTSE Russell’s World Government Bond Index (WGBI) starts to include Chinese bonds from October.