Foreign holdings of Chinese yuan (RMB) assets are poised for growth, according to Jia Ning, Director General of the Balance of Payments Department at the State Administration of Foreign Exchange (SAFE). Speaking at a press conference on Tuesday, Jia highlighted the stable and sustainable room for increased foreign investment in RMB assets.
Jia emphasized that China’s robust economic fundamentals and ongoing financial market reforms make RMB assets increasingly attractive to global investors. “We expect foreign holdings of RMB assets to continue to grow as China’s economy maintains its steady development trajectory,” she stated.
The SAFE official pointed out that the Chinese mainland’s commitment to opening up its financial markets provides ample opportunities for international investors. “We are fostering a more transparent and efficient investment environment, which will encourage more foreign capital to enter the Chinese market,” Jia added.
Recent data shows that foreign investors have been steadily increasing their holdings in China’s bond and stock markets, reflecting confidence in the nation’s economic prospects. The anticipated growth in foreign holdings of RMB assets also underscores the global recognition of the RMB as a stable and reliable currency.
In the context of global economic uncertainties, China’s financial markets offer diversification benefits for international investors. Jia concluded, “The combination of China’s economic resilience and the deepening of financial reforms will continue to attract foreign investment in RMB assets.”
