Rick: This month is very important for China’s bond market, because it’s officially entering into the Bloomberg Global Aggregate index. This index inclusion is expected to trigger over $100B of inflows annually. This is significant for global fixed income investors because at $13 trillion, China’s bond market is the 3rd largest in the world. But it’s also very significant for China because while the nation’s financial markets are very large and already quite deep, the level of integration with global capital markets is still very low. In fact, foreigners own only 8% of the outstanding stock of Chinese government bonds. Despite all of these milestones of increased financial integration, the Chinese yuan is still not a widely used currency and globally accounts for less than 2% of payments worldwide and of allocated official currency reserves. The index inclusion should not only increase foreign ownership, but could be a catalyst in promoting global usage of the yuan and provide a boost to its status as a global reserve currency.