China is taking significant strides to open up its financial markets, unveiling a series of measures that mark another pivotal step toward creating a more integrated, two-way financial system.
A cornerstone of this initiative is the steady internationalization of the Chinese renminbi (RMB). To facilitate this, China\u0027s financial regulators have optimized mechanisms such as the Bond Connect and the Cross-Border Interbank Payment System. These enhancements make it easier for foreign investors to access Chinese markets, while strengthening the RMB\u0027s role in global trade and finance.
Official data between January and August show that RMB payments accounted for 26.5 percent of the total value of cross-border trade transactions, reflecting the currency\u0027s growing global use. According to SWIFT data, the RMB is now the fourth largest payment currency globally, the second largest trade finance currency, and ranks third in terms of weight in the International Monetary Fund\u0027s Special Drawing Rights currency basket.
At the same time, China has become the world\u0027s second-largest bond market. Lu Lei, vice governor of the People\u0027s Bank of China, highlighted that foreign investors hold nearly 4.6 trillion yuan (approximately $628 billion) in Chinese bonds, setting a new record.
Foreign financial institutions are accelerating their expansion into China\u0027s market. In May, Belgium\u0027s Ageas Group invested 1.075 billion yuan to acquire a 10 percent stake in Taiping Pension Insurance (TPP), a subsidiary of China Taiping Insurance Holdings. \
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China boosts financial openness, promotes two-way market integration
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