Core Insights - Bloomberg is the first global index provider to include Chinese bonds in mainstream global indices, offering a unique perspective on the Chinese bond market through its flagship Bloomberg China Fixed Income Index series [3] - The Bloomberg China Aggregate Index recorded a return of -0.36% in September, with a year-to-date return of 0.06%, while the 30-day volatility showed a downward trend [5][7] - The China Treasury and Policy Bank Index also reported a return of -0.32% in September, while the China USD Credit (Kungfu) Index achieved a return of 0.86% for the month and 6.67% year-to-date [5][7] Index Performance Summary - The China Aggregate Index (I08271CN) had a month-to-date return of -0.36% and a year-to-date return of 0.06%, with an index level of 243.09 [7] - The China Treasury Index (I08273CN) recorded a month-to-date return of -0.44% and a year-to-date return of -0.15%, with an index level of 232.73 [7] - The China USD Credit (Kungfu) Index (I29380US) had a month-to-date return of 0.86% and a year-to-date return of 6.67%, with an index level of 202.13 [7] Market Developments - On September 26, China announced the opening of its domestic bond repurchase market to foreign investors, aligning with international practices and potentially accelerating the internationalization of Chinese bonds and the renminbi [13] - This reform aims to attract long-term capital inflows and may help mitigate short-term capital outflows, with the cross-border repurchase settlement volume through the Bond Connect expected to increase significantly [13] - Strong current account surpluses and high savings rates indicate China's robust domestic financial strength, which can act as a buffer in the event of mismatches in the dollar financial market [13]