China's central bank to boost support for global investors in financial markets

Beijing is stepping up efforts to expand the yuan’s global role.

People's Bank of China Governor Pan Gongsheng said the institution would work to improve connectivity between domestic and overseas financial infrastructure and support the development of the offshore yuan market, according to a statement published on the central bank's website.

The PBOC also plans to promote yuan-denominated bonds as globally recognised collateral, a move that could help broaden their acceptance in international financial transactions and strengthen the currency's role in global markets.

The measures are part of China's broader efforts to make its financial markets more accessible to overseas participants and facilitate cross-border investment. Better links between domestic and international financial systems could help reduce operational barriers for foreign investors and issuers.

Developing the offshore yuan market is also an important part of Beijing's efforts to expand the currency's international use. A deeper offshore market could support yuan-denominated financing and investment while providing international institutions with more opportunities to trade and hold yuan assets.

Promoting Chinese yuan bonds as recognised collateral could further improve their utility for global financial institutions, potentially increasing their attractiveness in cross-border funding and liquidity management.

The PBOC's plans underscore China's continued push to strengthen its position in international finance while encouraging greater participation by overseas investors in its domestic markets, Reuters reported.