THE SPECIFICS OF YUAN’S INTERNATIONALIZATION IN THE DEBT FINANCiAL INSTRUMENTS MARKETS.
Abstract. The article addresses the crucial aspects of rising need for actual onshore funding in RMB through panda bonds or other potential options, such as direct loans from local banks or fully funded swaps in RMB. Also, the alternative of well-known dim-sum
Actual problems of international relations. Release 139. 2019
market of Hong Kong should be carefully considered. The features of onshore and offshore funding for multinational companies are examined. Many international corporates, financials and multilateral institutions already have Asian currencies embedded in their issuance programs. A lot of them have significant economic ties to China. The outstanding volume of China’s bond market has surpassed RMB 70,4 trillion (approximately USD 10,6 trillion) in the August 2017, making in the third largest in the world. Significant changes in the structure of such issues are the subject of analysis carried out. Theoretically substantiated the role and place of RMB in the development of China’s bond market. With the inclusion of RMB into the SDR basket and ongoing market-based reform of the RMB exchange rate regime, China’s bond market will continue to attract interest from foreign issuers. The conclusion of the author : internationalization of yuan reflects the efforts to make the domestic bond market more accessible and attractive to foreign issuers and investors, meanwhile boosted by continuous progress on the pilot program of panda bonds, an expanding pool of practical knowledge, and more sophisticated systems and rules, the panda bond market is expected to achieve more progress in the competition with Hong Kong for offshore RMB funding through traditional dim-sum market.
Keywords: onshore funding, offshore funding, Panda bonds, Dim sum bonds, RMB’ internationalization.
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