Differences between offshore and onshore renminbi bond markets are decreasing in terms of yield spreads and clearing infrastructure, according to the Asia Securities Industry Financial Markets Association Asifma.
At a seminar on Thursday, Asifma unveiling a white paper on the currency’s roadmap - said spreads between bond yields in offshore and onshore markets have narrowed.
The average coupon on offshore renminbi bonds has moved to 3.2% in 2014, an 80bp increase from 2.4% in 2010 when the offshore markets opened. Meanwhile, the average coupon of onshore bonds is 3.8% this year compared to 2010’s 4.7%.
Foreign investors have also changed their investment strategies,...