China’s overseas bank lending has tripled in four years to RMB 2.52 trillion yuan and sales of onshore and offshore yuan debt are at or near records for the second year running, reports Reuters, as attractive pricing makes yuan poised to overtake overseas dollar loans at Chinese banks.
Bankers say the boom is encouraged by cost, because yuan rates are low. But the market is also starting to generate its own momentum and a deepening pool of demand to own and spend yuan—a sign China’s drive to globalise the currency is making headway even without progress to liberalise capital accounts.