FTSE Russell will add Chinese government bonds (CGBs) to its flagship World Government Bond Index (WGBI), the index provider said on Thursday, paving the way for billions of dollars of inflows into the world's second-largest economy. The CGBs will be included in the index from October 2021, pending an affirmation on March 2021. The addition will be phased into the index over a period of 12 months. "Since being placed on the Watch List, the Chinese authorities have implemented significant improvements to the fixed income market infrastructure, facilitating easier participation by international investors," FTSE Russell said in a statement. The index includes mostly developed economies and is a major step for Chinese bonds as investors seek safe-haven assets in a zero-interest-rate world.