LONDON - China's fixed income markets could attract as much as $140 billion in investment this year, Goldman Sachs forecast on Friday, with bonds from the government and policy banks due to claim their place in the FTSE WGBI benchmark index in October, .

The bank more than doubled its forecast for monthly investment flows, estimating China bonds will take in $5 billion-$10 billion a month, rising to $10 billion-$15 billion after China joins the FTSE WGBI index.

"The case for owning Chinese fixed income assets is strong," Goldman Sachs' Danny Suwanapruti wrote in a note, citing a supportive outlook for the yuan , strong economic growth, relatively good virus control and the potential for President-elect Joe Biden to revert to a more traditional approach to foreign policy.

 

(Reporting by Karin Strohecker; editing by Sujata Rao) ((karin.strohecker@thomsonreuters.com; +442075427262; Reuters Messaging: karin.strohecker.reuters.com@reuters.net))