China’s yuan bonds could attract $400 billion a year in next decade, 30% of central banks plan to increase yuan holdings in next 12-24 months
China’s yuan bonds could attract $400 billion a year in next decade, 30% of central banks plan to increase yuan holdings in next 12-24 months

China’s yuan bonds could attract $400 billion a year in next decade, 30% of central banks plan to increase yuan holdings in next 12-24 months

 

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Foreign flows to China’s local currency government bond market could balloon to $400 billion a year, according to a report from the Institute of International Finance (IIF).

Central banks were behind 60 per cent of the flows to local currency Chinese government bonds in the first quarter of 2021 as allocation of reserves to Chinese bonds continued to increase, the data showed.

While flows to Chinese bonds have continued to rise as the country opens up to foreign investors and its bonds are included in major indices, “they remain small relative to China’s . . .

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