As the free flow of funds in and out of China is still regulated by the Chinese government, the Chinese financial market is basically closed to foreign investors. Although there are visible steps towards opening China’s tightly controlled capital markets, the length of time it will take for China to fully open up its financial system can only be estimated. In the meantime, participants in global financial markets will increasingly focus on the development of the country’s offshore renminbi market. This article gives an overview of the offshore renminbi denominated bonds at the center of China’s master plan to internationalize its currency.

By Daniel Heiniger (Reference: CapLaw-2015-2)