The International Monetary Fund (IMF) published a new book on China's bond market on Wednesday, saying that it "will play a critical role" in China's further integration into the global financial system.

The book, titled "The Future of China's Bond Market," analyzes all of the major segments of China's bond market -- which it says is the world's third largest -- including sovereign bonds, corporate bonds and local government bonds.

"In the context of China's global financial market integration and further capital market development, its bond market will play a critical role," reads the opening chapter of the book.

IMF Managing Director Christine Lagarde said in a foreword to the book that the development of China's capital markets, the bond market in particular, will "play a crucial role in channeling resources to the most productive uses" as China moves forward with reforms and further opening up.

Hailing the book as "a prime example of the close collaboration between China and the IMF," Lagarde said China's bond market, as it matures and opens up, "will become an important pillar in the global financial landscape."

"Through our surveillance, policy advice, and capacity building efforts, the IMF has been a committed partner in China's successful journey of reform and opening up," the managing director said.

The book says that given the country's increasing global footprint, the next decade will be driven by China's greater integration into the global financial system.

The financial system in China, it says, "is likely to change" from its status quo of being "largely bank based."

The book also cites the inclusion of Chinese bonds in global indices as "a milestone" in China's financial sector integration. "This will create big opportunities for both China and the world, but requires a good understanding of the bond market structure, its unique characteristics, and future reform areas."

Starting in April, international financial information provider Bloomberg will include yuan-denominated government and policy bank securities into Bloomberg Barclays Global Aggregate Index, the company confirmed in January. The move is expected to promote the further opening up of China's bond market.

The book was edited by IMF's senior resident representative for China Alfred Schipke, former deputy director of Asia and Pacific Department Markus Rodlauer, and Zhang Longmei, its deputy resident representative for China.