BEIJING: China's central bank governor pledged to further open up the country's vast financial markets, saying yuan assets can meet the growing diversification needs of global investors.
Pan Gongsheng noted rising geopolitical risks, profound changes in the global economic landscape and rapid advances in AI.
"China’s steady economic growth and rapid development of high-tech industries provide solid support for RMB assets," a People’s Bank of China (PBOC) statement quoted Pan as saying in a Thursday (Oct 15) speech given on the sidelines of the annual meetings of the International Monetary Fund and the World Bank.
The PBOC will continue to expand risk management tools to expedite investment and financing, according to the statement.
China has stepped up efforts to open its capital markets and to promote yuan internationalisation, at a time when US President Donald Trump's trade war and unpredictable foreign policies dent trust in dollar assets.
Global financial markets have also become more turbulent as investors increasingly worry about whether companies embarking on massive investment in AI will manage to make sufficient earnings gains amid higher borrowing costs.
Pan said the PBOC will promote broader global acceptance and use of yuan bonds as eligible collateral, strengthen cross-border financial infrastructure connectivity and support the development of offshore yuan markets.