PBOC to expand market access, promote RMB bonds as collateral

China will further support global investors and issuers in accessing its financial markets and promote broader global acceptance and use of renminbi bonds as eligible collateral, the People's Bank of China's Governor Pan Gongsheng said.

Pan made the remarks at the Emerging Markets Conference on Thursday, on the sidelines of the Annual Meetings of the International Monetary Fund and the World Bank, according to a statement on the central bank's website on Friday.

China's steady economic growth and rapid development of high-tech industries provide solid support for RMB assets, Pan said. Its equity and bond markets, both the world's second-largest, offer ample liquidity to meet global investors' diverse asset allocation needs.

Over 1,200 overseas investors from nearly 80 countries and regions participate in China's interbank bond market, accounting for around 30 percent of investors in that market, he said. Overseas issuers can also conveniently access RMB financing through panda bonds and other channels.

The PBOC will continue to expand liquidity and risk management tools and make investment and financing more accessible and efficient, Pan said.

It will also strengthen cross-border financial infrastructure connectivity, support the development of offshore RMB markets and continue to advance the high-standard opening-up of China's financial markets, he added.

Meanwhile, in a meeting with senior European economic and financial officials on Friday, Pan said global imbalances cannot be resolved through exchange rate adjustments. They are closely linked to the evolution of the global division of labor, inherent flaws in the international monetary system, and persistently high fiscal deficits and consumption in some countries, he said.

China has continued to expand domestic demand and transform its growth model, Pan said. Under its 15th Five-Year Plan (2026-30), the country will combine investment in physical and human capital, promote the service sector and pursue structural reforms to achieve a new and higher level of internal and external economic balance.