RMB-denominated Bonds: A New 'Safe Haven' for Foreign Investment
1 week ago / Read about 0 minute
Author:小编   

Foreign capital has surged into China's RMB-denominated bond market, with net purchases totaling an impressive $33.2 billion in the first 18 days of April 2025. This influx underscores the appeal of China's macroeconomic stability, predictable policy framework, and stable exchange rate. The low volatility and high certainty associated with RMB-denominated bonds have positioned them as a key asset for global investors seeking to optimize their portfolio and hedge risks. Moreover, the arbitrage opportunities stemming from exchange rate swaps, coupled with the ongoing expansion of China's financial market openness, have further bolstered the allure of these bonds for overseas investors.