China Investment Corp predicts online future for bond market

China's bond market will go from offline to online in the near future and offer investors comprehensive financial services, a senior China Investment Corp executive said on Friday.

Liu Jun, vice-president at China Investment Corp, said China's inter-bank bond market and Shanghai and Shenzhen stock exchanges will provide differentiated and electronic bond products for investors.

The market value of Chinese bond market is $10.2 trillion. Liu cited a Citigroup Inc report that predicted that that figure would rise to about $37.6 trillion in 2025.

Liu said the current market value of China’s bond market accounts for 92 percent of the nation’s nominal GDP in 2016, and the proportion is much lower than that in Japan (266 percent), France (157 percent), Germany (147 percent) and the United States (133 percent).

Liu said that if the Chinese bond market value totaled $37.6 trillion in 2025, it would account for 134 percent of China's GDP.