PBOC chief touts yuan assets to investors in Bangkok: Bloomberg
Pan Gongsheng, governor of the People's Bank of China, promoted yuan assets at a closed-door event in Bangkok, highlighting their returns and lower volatility, and pledged to align rules with global standards. He cited data showing a yuan-heavy portfolio outperformed global benchmarks over two decad
The governor of China's central bank, Pan Gongsheng, promoted yuan assets to investors at a closed-door event in Bangkok and outlined plans to expand their role in global markets, Bloomberg News reported on Friday, citing attendees.
Pan highlighted the resilience of Chinese assets, particularly government bonds, and the diversification they can bring to investment portfolios, according to the report.
He cited data showing a portfolio of 80 per cent yuan bonds and 20 per cent Chinese equities delivered a larger annual return over two decades than a global asset portfolio, the report added. The yuan portfolio also had lower volatility than global benchmarks over five and 10 years, the People's Bank of China chief said.
Pan promised to align rules for yuan bonds more closely with global standards and promote their acceptance as eligible collateral at major international clearing houses, according to the attendees.
Separately, Stephanie von Friedeburg, Citi's global head of public sector group, told Reuters on Thursday that governments and state entities are increasingly raising funds outside dollar-denominated bonds, including in local currency markets such as the Chinese renminbi, as competition for capital raises issuance costs.