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Foreign entities holding RMB assets over 10 trillion yuan, the central bank said it would expand the function of RMB reserves and investment currency
September 22, 2021 01:13 Securities Daily
The stock market is changing rapidly, making investment decisions difficult?
Original title: Foreign entities hold RMB assets over 10 trillion yuan, the central bank said it would expand RMB reserves and investment currency functions
Our reporter Liu Qi
The 2021 RMB Internationalization Report released by the People’s Bank of China (hereinafter referred to as the “Report”) shows that as of the end of June 2021, the total amount of domestic RMB stocks, bonds, loans and deposits held by foreign entities was 102,600. Billion yuan, a year-on-year increase of 42.8%.
The "Report" also shows that as of the end of 2020, the total amount of financial assets such as domestic RMB stocks, bonds, loans and deposits held by foreign entities totaled 8.98 trillion yuan. In other words, in just six months, the RMB assets held by foreign entities have increased by 1.28 trillion yuan.
The "Report" pointed out that my country's economic fundamentals are sound, the monetary policy remains within the normal range, the renminbi has a higher interest margin relative to major convertible currencies, and that renminbi assets are more attractive to global investors.
Regarding the reason why renminbi assets are sought after by foreign entities, Wang Youxin, a senior researcher at the Bank of China(3.070, 0.02, 0.66%) Research Institute, said in an interview with a reporter from the Securities Daily that in the context of the continuous spread of the global new crown pneumonia epidemic, countries have recovered and divided. Inflation is high and the rate of return on investment is falling. In addition to traditional safe-haven assets and currencies, international investors are in urgent need of new investment assets. The stable recovery of China's economy and the expansion of financial openness have provided international investors with more opportunities to enter China's capital market.
According to China’s economic data for the first half of the year published by the National Bureau of Statistics, preliminary calculations showed that the gross domestic product in the first half of the year was 53.2 trillion yuan, a year-on-year increase of 12.7% at comparable prices; an average growth rate of 5.3% over the two years. my country's economic development is showing a trend of stabilizing and strengthening, and stabilizing and improving.
“The real economy and the industrial supply chain are gradually recovering, the profits of listed companies have improved, and the Shanghai Stock Exchange Composite Index has risen volatility, providing a better return on investment for international investors.” Financial institutions enjoy national treatment in China, the proportion of foreign shareholding in banks, securities, insurance, funds, etc. has been liberalized, and the scope of business and qualifications have been greatly relaxed. The liberalization of QFII quotas, continuous improvement of the Shanghai-Shenzhen-Hong Kong Stock Connect and Bond Connect mechanisms, and the official launch of Licaitong have increased the facilitation of foreign investment and promoted the expansion of foreign capital inflows.
Judging from the 2020 data released by the "Report", domestic financial market stocks and bonds are the main types of RMB financial assets allocated by overseas entities. As of the end of 2020, the market value of domestic RMB stocks held by overseas entities was 3.41 trillion yuan, and the bond custody balance was 3.33 trillion yuan. The scale greatly exceeds the deposit balance by 1.28 trillion yuan, and the loan balance is 0.96 trillion yuan.
Since the beginning of this year, the two have also maintained a sustained growth momentum. The People's Bank of China announced that overseas institutions and individuals hold domestic RMB financial assets. As of the end of June, the market value of domestic RMB stocks held by overseas entities was 37,600 yuan, and bond custody was about 3.84 trillion yuan.
The "Report" stated that in the next stage, "The People's Bank of China will continue to promote high-level two-way opening of the financial market, enrich risk hedging tools, improve the facilitation of the allocation of RMB financial assets by foreign entities, and support the allocation of foreign central banks, monetary authorities and reserve management departments. RMB reserve assets to expand the currency functions of RMB reserves and investment".
In Wang Youxin's view, the attractiveness of RMB assets will further increase in the future. China's economy will continue to maintain a good development trend in the future, and its global share will continue to rise. The reform of the RMB interest rate and exchange rate marketization will continue to deepen, and its use in cross-border trade, investment and financing, and asset management will steadily increase. At the same time, as my country's financial market continues to open up, it will provide more channels and possibilities for international investors to seek high returns, and attract continued global capital inflows. Therefore, in the future, global investors’ interest in China’s financial market will continue to increase. “Made in China” will gradually shift to “Chinese assets”. Cross-border capital flows provide Chinese market and asset solutions.
zhttps://finance.sina.com.cn/roll/2021-09-22/doc-iktzqtyt7311759.shtml
Foreign entities holding RMB assets over 10 trillion yuan, the central bank said it would expand the function of RMB reserves and investment currency
September 22, 2021 01:13 Securities Daily
The stock market is changing rapidly, making investment decisions difficult?
Original title: Foreign entities hold RMB assets over 10 trillion yuan, the central bank said it would expand RMB reserves and investment currency functions
Our reporter Liu Qi
The 2021 RMB Internationalization Report released by the People’s Bank of China (hereinafter referred to as the “Report”) shows that as of the end of June 2021, the total amount of domestic RMB stocks, bonds, loans and deposits held by foreign entities was 102,600. Billion yuan, a year-on-year increase of 42.8%.
The "Report" also shows that as of the end of 2020, the total amount of financial assets such as domestic RMB stocks, bonds, loans and deposits held by foreign entities totaled 8.98 trillion yuan. In other words, in just six months, the RMB assets held by foreign entities have increased by 1.28 trillion yuan.
The "Report" pointed out that my country's economic fundamentals are sound, the monetary policy remains within the normal range, the renminbi has a higher interest margin relative to major convertible currencies, and that renminbi assets are more attractive to global investors.
Regarding the reason why renminbi assets are sought after by foreign entities, Wang Youxin, a senior researcher at the Bank of China(3.070, 0.02, 0.66%) Research Institute, said in an interview with a reporter from the Securities Daily that in the context of the continuous spread of the global new crown pneumonia epidemic, countries have recovered and divided. Inflation is high and the rate of return on investment is falling. In addition to traditional safe-haven assets and currencies, international investors are in urgent need of new investment assets. The stable recovery of China's economy and the expansion of financial openness have provided international investors with more opportunities to enter China's capital market.
According to China’s economic data for the first half of the year published by the National Bureau of Statistics, preliminary calculations showed that the gross domestic product in the first half of the year was 53.2 trillion yuan, a year-on-year increase of 12.7% at comparable prices; an average growth rate of 5.3% over the two years. my country's economic development is showing a trend of stabilizing and strengthening, and stabilizing and improving.
“The real economy and the industrial supply chain are gradually recovering, the profits of listed companies have improved, and the Shanghai Stock Exchange Composite Index has risen volatility, providing a better return on investment for international investors.” Financial institutions enjoy national treatment in China, the proportion of foreign shareholding in banks, securities, insurance, funds, etc. has been liberalized, and the scope of business and qualifications have been greatly relaxed. The liberalization of QFII quotas, continuous improvement of the Shanghai-Shenzhen-Hong Kong Stock Connect and Bond Connect mechanisms, and the official launch of Licaitong have increased the facilitation of foreign investment and promoted the expansion of foreign capital inflows.
Judging from the 2020 data released by the "Report", domestic financial market stocks and bonds are the main types of RMB financial assets allocated by overseas entities. As of the end of 2020, the market value of domestic RMB stocks held by overseas entities was 3.41 trillion yuan, and the bond custody balance was 3.33 trillion yuan. The scale greatly exceeds the deposit balance by 1.28 trillion yuan, and the loan balance is 0.96 trillion yuan.
Since the beginning of this year, the two have also maintained a sustained growth momentum. The People's Bank of China announced that overseas institutions and individuals hold domestic RMB financial assets. As of the end of June, the market value of domestic RMB stocks held by overseas entities was 37,600 yuan, and bond custody was about 3.84 trillion yuan.
The "Report" stated that in the next stage, "The People's Bank of China will continue to promote high-level two-way opening of the financial market, enrich risk hedging tools, improve the facilitation of the allocation of RMB financial assets by foreign entities, and support the allocation of foreign central banks, monetary authorities and reserve management departments. RMB reserve assets to expand the currency functions of RMB reserves and investment".
In Wang Youxin's view, the attractiveness of RMB assets will further increase in the future. China's economy will continue to maintain a good development trend in the future, and its global share will continue to rise. The reform of the RMB interest rate and exchange rate marketization will continue to deepen, and its use in cross-border trade, investment and financing, and asset management will steadily increase. At the same time, as my country's financial market continues to open up, it will provide more channels and possibilities for international investors to seek high returns, and attract continued global capital inflows. Therefore, in the future, global investors’ interest in China’s financial market will continue to increase. “Made in China” will gradually shift to “Chinese assets”. Cross-border capital flows provide Chinese market and asset solutions.
zhttps://finance.sina.com.cn/roll/2021-09-22/doc-iktzqtyt7311759.shtml