How the renminbi bond market punches above its weight

ON ASIA

The new offshore renminbi bond market kicked off in earnest in the middle of 2010 when the Chinese authorities lifted certain restrictions and made it feasible for many more institutions to issue bonds.

Since that point, the market has expanded rapidly from RMB29bn in July 2010, to RMB61bn at the end of 2010 and subsequently to more than RMB200bn at the time of writing. This is, of course, still small in the terms of the overall global bond markets, which amount to $95trn, but in terms of opportunity, it might be fair to say the offshore renminbi bond market punches well above its weight. The main reason retail investors are right to be so interested in this market is for the first time they can gain exposure to Chinese currency. Although the economic growth rate in China has moderated ...