Space For Rent

Space For Rent
Tuesday, June 30, 2015, Ashar 16, 1422 BS, Ramadan 12, 1436 Hijr

JPMorgan sees $500b of China debt by 2020
Published : Tuesday, 30 June, 2015,  Time : 12:00 AM,  View Count : 8

NEW YORK, June 28: The opening of China's markets has the potential to boost global holdings of the nation's onshore bonds four-fold to as much as $500 billion in five years, JPMorgan Chase & Co estimates.
Overseas institutions held 735.2bn yuan ($118bn) of the debt as of April 30, 2 per cent of the 37.3 trillion yuan outstanding, official data show. By early next year, the holdings may reach $175bn, at which point China will surpass Brazil as the world's biggest emerging market for local-currency global bond investors, according to JPMorgan.
Having yuan assets more widely held will support President Xi Jinping's push for the currency to be included in International Monetary Fund (IMF) reserves this year.
The inflows will also provide demand for bonds that the government needs to clean up a regional debt mess and revive an economy growing at the slowest pace since 1990.    ?Washington Post-Bloomberg News Service

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