The BRICS-led New Development Bank says China’s onshore bond market is emerging as an attractive funding source for developing economies, backed by ample liquidity and a relatively stable yuan. This development could expand local-currency sovereign and corporate funding alternatives for EMs, reducing FX rollover and currency risk and potentially shifting some external borrowing away from offshore markets.
The BRICS-led New Development Bank says China’s onshore bond market is emerging as an attractive funding source for developing economies, backed by ample liquidity and a relatively stable yuan. This development could expand local-currency sovereign and corporate funding alternatives for EMs, reducing FX rollover and currency risk and potentially shifting some external borrowing away from offshore markets.
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