China central bank deputy governor:
- Global impact and attractiveness of Chinese bond market have greatly increased in recent years
- Work on promoting Chinese onshore bonds to become qualified collateral in Hong Kong and global markets
- Total balance of China’s bond market hit 192 trln yuan at end Aug 2025, ranking world’s second largest
- Global bond investors remain confident in China’s bond market
- Chinese yuan bonds provide very good way to preserve and increase investment values for investors
- Foreign investors currently hold 2% of Chinese yuan bonds
- Will support various foreign instituions to conduct repo business to increase yuan bond usage efficiency
- to expand pool of swap connect market makers and raise daily net trading limit to 45 bln yuan from 20 bln yuan
- will accelerate preparation for the launch of Yuan government bond futures in HK
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China’s central bank is stepping up efforts to boost the global role of its bond market, with Deputy Governor remarks underscoring both scale and ambition.
The onshore market has swelled to 192 trillion yuan, the world’s second largest, but foreign ownership remains low at just 2%. To draw in global investors, authorities are pushing for Chinese bonds to qualify as collateral in Hong Kong and internationally, expanding swap connect limits, and preparing to launch yuan-denominated government bond futures in Hong Kong.
The strategy aims to deepen liquidity, improve hedging tools, and make yuan assets more attractive as a store of value.
For markets, these moves point to Beijing’s determination to internationalize the yuan and counter capital outflow pressures, potentially supporting demand for Chinese debt even as geopolitical risks and policy uncertainty keep global allocations cautious.
