China’s march to widen the international influence and acceptance of the Rmb in global trade and finance is becoming reality. Hong Kong’s financial centre will lead the vanguard by developing and hosting the infrastructure needed to help Beijing interface its onshore sovereign bonds with international fixed income investors.
The Rmb’s main drawback to being accepted as an investment grade financial asset is its difficulty for foreign investors to efficiently buy and sell liquid, fixed income, onshore Rmb denominated, fixed income assets in large sizes. China wants to offer users incentives for holding Rmb assets as part of its overall $1 trillion global trade surplus. In December 2024 the Rmb remained...
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