BEIJING: China's central bank governor Pan Gongsheng touted yuan assets to investors at a closed-door event in Bangkok and outlined plans to expand their role in global markets, Bloomberg News said on Friday, citing some who attended.
Pan highlighted the resilience of Chinese assets, particularly government bonds, and the diversification they can bring to investment portfolios, the report said.
Pan cited data showing a portfolio of 80 per cent yuan bonds and 20 per cent Chinese equities delivered a larger annual return over two decades than a global asset portfolio, the report added.
The yuan portfolio also had lower volatility than global benchmarks over five and 10 years, the People's Bank of China chief said.
Pan promised to align rules for yuan bonds more closely with global standards and promote their acceptance as eligible collateral at major international clearing houses, according to the attendees.
Governments and state entities are increasingly raising funds outside dollar-denominated bonds, including in local currency markets such as the Chinese renminbi, as competition for capital raises issuance costs, Citi's global head of public sector group Stephanie von Friedeburg told Reuters on Thursday.
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