Bloomberg Barclays Benchmark launched two new mixed indices on Wednesday, both with components of the China Aggregate Index. That means Bloomberg is the first global index provider to bring Chinese markets into its global indices. And the new indices may provide investors clearer insight into China's bond market.

The two new indices are in Bloomberg’s Fixed Income Indices section. One combines the Global Aggregate Index with two components of the China Aggregate Index – the Treasury Bond Index and Policy Bank Bond Index. And the other is the combination of Emerging Market Local Currency Government Index and China’s Treasury Bond Index.

Steve Berkley, global head of indices at Bloomberg, took pride in publishing the new indices, and stressed the importance of bringing in the China bond market. 

“China is currently not part of these indices because the currency is not really freely trading and convertible, but there will come a time we believe when China will be included in the Global Aggregate Index. So these indices are really important for investors because it gives them a sense of what the world will look like sometime down the road,” Berkley said.

Jennifer Carpenter, an associate professor of finance at Stern’s School of Business at New York University indicated having access to this new wealth of information could prove to be a big asset for traders.

“Just an easy way to start thinking about, ‘well what if I started investing in China and how is that going to improve my return risk profile’, which should start to whet the appetite as well as start to build the familiarity you need for people to become comfortable investing real money there,” Carpenter said.

While many traders remain concerned about China’s interventionist economic policies, recent reforms have provided a major source of optimism.

China's bond market has already showed its large potential. At the end of 2016, the balance of China's bond market reached 63.7 trillion yuan (nearly 9.3 trillion US dollars), as the third largest bond market worldwide, and the second largest in Asia.

“The bus is coming, people have seen the improvements and the reforms that have been made and they are being reflected with the announcement of these two indices,” Berkley said confidently.