Onshore bond market access widened for foreign investors

China will open its onshore bond market further to foreign institutions by relaxing the limits on crossborder capital flows, which in turn will boost global holdings of Chinese financial assets, experts said.

According to draft new regulations published by the People's Bank of China, the central bank, if foreign institutions use both yuan and foreign currency to invest in the onshore bond market, they only need to meet the requirements imposed on foreign currency outward remittances.

The draft, which was released late on Monday for public opinion, said accumulated foreign currency used for outward remittances should not exceed 120 percent of the total foreign currency used for bond investments, compared with 110 percent earlier.