<\/p>\n
China\u2019s onshore bond market, backed by ample liquidity and a stable currency, is emerging as an attractive funding source for developing economies, according to the Brics-led New Development Bank.<\/p>\n
With borrowing costs low, the Chinese bond market \u201cis now one of the most cost-effective funding sources in the world,\u201d Zhongxia Jin, the bank\u2019s director general for treasury and portfolio management, said in Beijing on Tuesday. \u201cWe don\u2019t just see the Chinese bond market as a source for cheap cash, we see this market as the future of local currency finance.\u201d<\/p>\n
Yuan-denominated funding, Jin added, provides a natural hedge for projects in local currencies, particularly across the Global South, which includes India, Indonesia and the Philippines, as well as Brazil and other parts of Latin America. Such financing is especially suited to initiatives like the green transition.<\/p>\n
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The lender\u2019s view aligns with Beijing\u2019s push to elevate the yuan\u2019s role as a global funding currency, signaling room for continued growth in issuance and liquidity for foreign issuers in China\u2019s onshore bond market.<\/p>\n<\/p>\n
\u201cChinese bond market is no longer just an alternative asset class, it tends to become a key pillar of global financial architecture,\u201d Jin said, citing lower funding costs and relative currency stability.<\/p>\n
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New Development Bank sold five yuan-denominated notes totaling 25 billion yuan ($3.6 billion) last year, the largest annual issuance since it began tapping the market in 2016, according to data compiled by Bloomberg. In its latest deal late last year, the bank extended panda bond maturities to 10 years for the first time, signaling a push to secure longer-term funding.<\/p>\n
New Development Bank was established by Brics members Brazil, Russia, India, China and South Africa, according to the bank\u2019s website.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Bricsled #Development #Bank #touts #yuan #funding #global #South<\/p>\n","protected":false},"excerpt":{"rendered":"
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