Chinese debt market may see $80-bn inflows in 2019, says Morgan Stanley

China may see about $80 billion of inflows to its debt market next year when yuan-denominated bonds get added to a widely tracked index, according to Morgan Stanley.   

Foreign demand, from both active and passive managers, for government bonds should help fund the current account deficit next year and stabilise the yuan, analysts Min Dai and Chun Him Cheung wrote in a note Wednesday. Bloomberg LP earlier this year put China's yuan-denominated bonds on track for a phased-in inclusion in the Bloomberg Barclays Global Aggregate Index in April. The market may see further $140 billion of inflows if two other