Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
On Saturday, Disney's Marvel Studios announced its upcoming slate of superhero films during a panel at San Diego Comic-Con.Entertainmentread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Silver's rally could be losing its shine after the precious metal reached its year-to-date high, futures experts warn.Futures Nowread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
Domestic Chinese bonds became part of a major global index on Monday, marking another milestone in the opening up of China's financial markets.
Hundreds of onshore Chinese bonds will be added to the Bloomberg Barclays Global Aggregate Index over the next 20 months. Analysts estimated that the full inclusion will attract around $150 billion of foreign inflows into China's roughly $13 trillion bond market — the third-largest in the world after the U.S. and Japan.
The index inclusion is the latest step in the opening up of China's financial markets to global investors. Last year, Chinese A-shares — yuan-denominated stocks traded on the mainland — were included in the MSCI Emerging Markets Index. China has also launched "connect" programs that allow investors to buy certain shares and bonds through Hong Kong's stock market.
"Today marks an important milestone as China's capital markets continue to find their place in the global investment mainstream," said Justin Chan, HSBC's co-head of global markets in Asia Pacific.
The Bloomberg Barclays Global Aggregate Index will add 364 bonds issued by the Chinese government and the so-called "policy banks" — or lenders set up to support the government's development plans and policies.
Here is the breakdown of the bonds set to be included in the index:
When the bonds are fully added into the global benchmark, China's weight in the index will increase to around 6 percent and the Chinese yuan will become the fourth-largest currency component, according to Bloomberg.
Despite its large size, Chinese bonds are under-owned by global investors. Analysts estimate that foreign holding of Chinese debt stands at only 2 percent of the $13 trillion in total value.
In particular, Chinese central government bonds have the highest foreign ownership at close to 8 percent, noted Khoon Goh, head of Asia research at ANZ bank, in a Monday report. But that's still "very low" compared to 35 percent for U.S. Treasurys and 28 percent for British government debt.
Being added into the Bloomberg Barclays Global Aggregate Index will change things. The index is widely tracked by asset managers globally, which means they will seek to replicate the benchmark's holdings and performance and tweak the components of their funds to include Chinese bonds.
And it doesn't stop there. Several other key index providers are also considering whether to add Chinese bonds into their benchmarks. They include the J.P. Morgan Government Bond Index-Emerging Markets and the FTSE World Government Bond Index.
The inclusion of Chinese bonds into various indexes will push China to further reform its financial markets, said Neeraj Seth, managing director and head of Asian fixed income at global investment management firm BlackRock on Monday.
"More opening up of the financial sector, reforms with regards to how you manage credit risk, more development of the derivatives market onshore — all that will continue, which will further pave the path for both index inclusion as well as entry of foreign investors into this market," he told CNBC's "Squawk Box."
More foreign investors buying Chinese assets will mean greater demand for the yuan.
ANZ's Goh estimated that China would receive as much as $275 billion in foreign inflows as a result of its bonds being added to indexes by Bloomberg, J.P. Morgan and FTSE. That would help increase the Chinese yuan's share in foreign currency reserves held by central banks globally, he added.
Without such inflows, the Chinese yuan would come under pressure as structural changes within China are expected to shrink its current account surplus. A current account surplus occurs when the total value of goods, services and investments that a country exports exceeds what it imports.
Morgan Stanley predicted in a February report that China's current account could turn into a deficit this year. That means the Asian economic giant would have to attract more foreign money to fund its needs. The last time China had a current account deficit was in 1993.
Such a development would put the Chinese yuan under pressure, noted Goh. But, "given the structural increase in foreign portfolio inflows over the next few years, we expect the yuan to stay supported," he added.
— CNBC's Kelly Olsen and Weizhen Tan contributed to this report.