The total amount of yuan bonds owned by overseas institutions reached 3.22 trillion yuan (over $500 billion) as of the end of last month, according to data from China Central Depository & Clearing (CCDC).
That’s up 64.86 billion yuan (around $10 billion) from a month earlier, and almost a $90-billion rise since August 2020. Specifically, treasury bonds saw the largest month-on-month growth of 51.74 billion yuan (about $8 billion), followed by bonds issued by policy banks, data showed.
Analysts say the stability of yuan-denominated assets will be a major focus of global investors amid the pandemic uncertainties weighing on the world economy.
China has the world’s second-largest bond market and the government has been stepping up efforts lately to attract foreign investors.
Last year, British index provider FTSE Russell gave its final approval for the addition of Chinese government bonds in its flagship World Government Bond Index that includes mostly developed economies. The inclusion of around $1.5 trillion out of China’s $16 trillion bond market is set to occur in October this year.
For more stories on economy & finance visit RT’s business section