(Bloomberg) -- BlackRock Inc. has “indefinitely” postponed the launch of its China bond exchange-traded fund, the Financial Times reported late on Saturday in New York, citing two unidentified people familiar with the decision.

Growing US-China tensions were one reason for the move, with one of the people saying there was the risk of a political backlash against the prospect of US capital flowing to the Chinese government, the FT said. Another factor was the reverse of the gap in yields between US and Chinese bonds, meaning US Treasury bonds now deliver a higher return than Chinese counterparts, according to the report.

BlackRock told the FT it wouldn’t comment on “market speculation.”

Read: BlackRock Plans First China ETF Product This Year: Reuters

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