Index provider FTSE Russell will retain China's onshore government bonds on a watchlist for a possible upgrade that could allow Chinese debt entry to its widely-tracked government bond index.

Malaysian bonds, which were on review for a downgrade that would have excluded them from the World Government Bond Index (WGBI), were also retained on the watchlist, giving the Southeast Asian country six months to try and improve liquidity so that it avoids a damaging eviction from the index.