China's central bank to further open its financial markets to foreigners, chief says
FXI•China's central bank chief said the country would further open its financial markets to foreign investors and promote yuan internationalization. He also outlined plans to support yuan bonds as collateral, cross-border financial infrastructure and offshore yuan markets.
1. Opening financial markets
People’s Bank of China Governor Pan Gongsheng pledged to further open China's financial markets, saying yuan assets could meet global investors’ growing need for diversification amid trade uncertainty. He cited geopolitical risks, changes in the global economy and advances in AI as reasons to promote yuan internationalization.
2. Yuan market measures
Pan said the central bank would promote broader global acceptance and use of yuan bonds as eligible collateral, strengthen cross-border financial infrastructure connectivity and support offshore yuan markets. It would also continue expanding risk management tools to facilitate investment and financing. In a separate speech, he said global imbalances could not be corrected through exchange rate adjustments.
