China's central bank to further open up Chinese financial markets to foreigners

China’s central bank governor, Pan Gongsheng, has announced plans to further liberalise the country’s financial markets. In a speech at the IMF and World Bank meetings, Pan asserted that yuan assets can meet the growing diversification needs of global investors. He highlighted rising geopolitical risks, significant changes in the global economy, and rapid advancements in artificial intelligence.

Pan said that the People’s Bank of China (PBOC) will bolster risk management tools to facilitate investment and financing. He also mentioned that China is intensifying efforts to open its capital markets and promote the internationalisation of the yuan amid uncertainties in the US economy and unpredictable foreign policies. The PBOC aims to enhance the global acceptance and use of yuan bonds as collateral, improve cross-border financial infrastructure connectivity, and foster the development of offshore yuan markets.