South Korea and India are vying for inclusion in major FTSE Russell bond indexes, with South Korea making comprehensive reforms to appeal to the World Government Bond Index (WGBI). As FTSE Russell prepares to announce new inclusions on October 8, Seoul hopes its extended currency trading hours and Euroclear system will secure its spot, potentially attracting $68 billion in capital inflows. However, low transaction volumes might delay its inclusion until 2025, despite fulfilling all criteria.
India, though lacking significant public reforms and not utilizing Euroclear, has already been added to JPMorgan Chase’s emerging-market bond index, drawing $14 billion in inflows by August. India’s popularity among global investors, fueled by demand for emerging-market investments after Russia’s exclusion from indices, might enhance its chances of joining the FTSE Russell’s $4.6 trillion emerging-market bond index.
Meanwhile, Vietnam’s equities are likely to be upgraded to emerging market status next year, following the introduction of rules eliminating the pre-funding requirement for overseas investors. As global interest rates decrease, investors are increasingly turning to emerging-market bonds and equities for higher yields and diversification.
Original Story https://www.livemint.com/news/india/ftses-index-revamp-has-korean-indian-bond-markets-on-watch-11728253770647.html
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