Record foreign demand for Chinese assets will boost efforts to develop a more global role for the renminbi, analysts say.  

Foreign investors have snapped up Chinese debt this year, lured by relatively high yields and the country’s strong economic recovery following the coronavirus pandemic. Meanwhile, the People’s Bank of China has not sought to weaken the renminbi even after large rallies for both the onshore and internationally-traded versions of the currency.

The PBoC had encouraged inflows by promising in a report in August that “the allocation of the renminbi assets by foreign investors will be further facilitated”, adding that it expected “more foreign central banks and monetary authorities to hold renminbi [assets] as reserve assets”.