China is set to open the final corner of its onshore bond market to foreign players as Beijing tries to reignite global interest in renminbi debt, according to a report by FT on Friday.
The People’s Bank of China stated that foreign investors will be given access to onshore exchange-based bond markets in Shenzhen and Shanghai beginning June 30.
The central bank stated that the opening of the markets would promote investing by foreign institutional investors in the local bond market and promote cross-border management of funds.
The move emerge after global investors disposed of a record $35 billion worth of renminbi-denominated bonds in the first four months of 2022.
China already gives access to more than 1,000 foreign institutional investors to trade directly in its centralized interbank bond market, which accounts for 90% of the nation’s $20.6tn onshore debt. CSI 300 Index up +0.21%, CNYUSD up +0.60%