Win-win: China's capital markets are opening up more

The renminbi's (RMB) profile as a global currency continues to rise. In value terms, the RMB accounts for more than 2% of international financial transactions, and we expect this to grow as China eases the rules for access to its capital markets.

The key takeaways from this edition of Economic Insights are:

  • China's economy is the largest in the world in purchasing power parity terms.
  • China has committed to easing access to its capital markets, and we expect foreign holdings of RMB assets to rise, from a below 3% share of its bond and less than 2% of the equity markets.
  • For insurers, RMB assets are an investment diversification opportunity and a source of potentially higher returns.
  • We also expect foreign insurers to continue to expand their physical footprint in China.

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Economic Insights Win-win: China's capital markets are opening up more

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