People's Bank of China Governor Pan Gongsheng outlines further market opening, wider global use of renminbi bonds as collateral

In a keynote address at an emerging markets seminar held during the International Monetary Fund and World Bank annual meetings, People's Bank of China Governor Pan Gongsheng outlined plans to further open China’s financial markets to global investors and issuers. Priorities include promoting renminbi bonds as widely accepted eligible collateral, expanding liquidity and risk management tools, improving investment and financing access, and strengthening links between onshore and offshore financial infrastructure. Pan said more than 1,200 foreign investors from nearly 80 countries and regions participate in China’s interbank bond market, accounting for about 30% of investors. They can access the market through channels including Bond Connect and use repos and derivatives to manage liquidity and hedge risk, building on the authorities’ earlier expansion of onshore bond repo access. Foreign governments, development institutions, financial firms and companies can also raise renminbi funding through instruments such as panda bonds. The central bank will support further development of offshore renminbi markets, including Hong Kong’s role as the largest offshore renminbi business center. Pan framed these measures against growing global demand for diversified assets and technology investment, citing China’s large, liquid bond and equity markets and the growth of its high-tech industries.