Exclusive interview with ICMA CEO Bryan Pascoe: The Chinese market's appeal to international investors continues to grow, and Renminbi bonds are becoming an important option for global allocation.

Ask AI · Which reform measures are continuously increasing the appeal of RMB bonds?

China Finance Network (Caixin) April 1 News (reporters Li Ting, Gao Ping) As global market volatility and divergence intensify, the stability and diversification value of the Chinese market have become increasingly prominent.

On March 31, at the ICMA China Debt Capital Markets 2026 Annual Meeting, Bryan Pascoe, CEO of the International Capital Market Association, said in an exclusive interview with a Caixin reporter that, after years of reforms and opening-up, China’s market appeal to international investors has kept strengthening, and RMB bonds are becoming an important option for global allocation.

Bryan Pascoe pointed out that, as a series of opening-up initiatives have been implemented in recent years—including the expansion of Bond Connect, the recognition of the Global Master Repurchase Agreement (GMRA), and the continued alignment of green bonds with international standards—international investors’ understanding of and participation in China’s market have improved significantly. “We are currently experiencing notable structural changes, and more capital is flowing into China’s bond market.”

Caixin: Does the Chinese market still remain attractive to international investors?

Bryan Pascoe: I think the appeal is continuously increasing. Over the past 5 to 10 years, China has carried out a series of structural reforms across multiple areas such as the repo market, sustainable finance, and Bond Connect, significantly improving international investors’ understanding of the Chinese market, familiarity with it, and ease of market access.

At the same time, global investors are actively seeking diversification and stability in their investment portfolios, and they want to reduce correlation with other major markets that are characterized by high volatility. China, precisely, shows particularly attractive characteristics in these respects.

Therefore, whether based on the progress of structural reforms or on today’s market conditions, international society’s interest in China’s market is in a strong and steadily growing state. Today, we also heard relevant institutions in Hong Kong and Macau mention that the offshore RMB market is gaining more attention. So I believe that, whether onshore or offshore, we are witnessing significant structural changes and more funds flowing into China’s bond market.

Caixin: Should global investors consider allocating RMB bonds?

Bryan Pascoe: As I mentioned just now, China has implemented many positive structural reforms, and the market fundamentals are currently also fairly favorable. In an environment where interest rates in other major markets may rise and volatility may increase, China currently offers a relatively stable market environment and very notable diversification value.

For international investors, the real challenge often lies in whether they can enter the market at a sufficiently large scale and obtain liquidity and market activity levels comparable to other markets. China’s bond market has many positive factors. I believe that most investors are starting to realize that if they have not yet participated in China’s bond market, they should seriously consider how to allocate and position themselves.

Of course, there are also some structural factors internationally that make market access still somewhat complex, and there is room to improve familiarity. Therefore, it is also crucial to continue introducing to the international market the attractiveness of high-quality assets within China.

Caixin: How can global confidence in RMB assets be further strengthened?

Bryan Pascoe: Regulators’ continued clear signals of reform and opening-up are key to stabilizing expectations. Second, focus on improving market liquidity, attracting more institutional investors, and enhancing trading platforms and information disclosure.

Liquidity is the key to confidence; therefore, attracting more institutional investors, improving market liquidity through trading platforms, and enhancing transparency are important aspects of increasing the attractiveness of China’s market.

In addition, aligning with international practices is also very important. The People’s Bank of China has recently recognized the Global Master Repurchase Agreement (GMRA) in the interbank bond market. This is an important signal for international investors, showing that standardization and alignment with international conventions are being steadily advanced, which will strongly boost market confidence.

In the area of sustainable finance, China already has good practices and a solid foundation in aligning with international standards, which also promotes the development of green finance. Of course, there is still a lot of work to do, including continuing to improve liquidity, building standardized links with international markets, improving the sustainable finance framework, and maintaining coordination with international standards.

Meanwhile, international participants sometimes still feel somewhat puzzled by the complexity of the domestic market—for example, the coexistence of the interbank market and the exchange market, and the relatively complex regulatory environment. Simplifying processes and reducing complexity will also help strengthen confidence from an international perspective.

Caixin: In the future, how will ICMA support the development of China’s bond market?

Bryan Pascoe: Since ICMA’s establishment 50 years ago, it has been committed to carrying out proactive industry advocacy, staying in communication with regulators, and developing market-led best-practice standards. In China, we are very active in both of these areas. In particular, in the field of sustainable finance, we have seen that China’s relevant frameworks and catalogues are aligned with our principles.

At the same time, we also work closely with members inside and outside the country to jointly advocate measures such as the recognition of GMRA. Therefore, we can play a role in both industry advocacy and standards-setting.

In addition, we also place a strong emphasis on improving market efficiency, liquidity, and transparency. Initiatives such as Bond Connect can play an important role here. By connecting international and domestic markets, we can effectively promote the flow of funds between the two markets and mutual understanding.

In the future, ICMA will continue to promote the alignment of China with international standards in sustainable finance, and work together with members inside and outside the country to help implement international rules such as GMRA; relying on mechanisms such as Bond Connect, we will strengthen the linkage between onshore and offshore markets, improve market efficiency, liquidity, and transparency, and promote cross-border capital flows and two-way understanding.

Caixin: What are the expectations for China’s bond market this year?

Bryan Pascoe: We believe that, compared with other markets, China will continue to maintain significant stability, which may in turn attract more capital inflows.

We see that the issuance market is also very active. Interest in the onshore panda bond market is gradually increasing, and in the offshore market, issuance in Hong Kong’s dim sum bond market is also rising. Since RMB interest rates are relatively attractive, and the market remains stable, combined with the increase in RMB financing demand brought by RMB internationalization, we expect to see more RMB bond issuance.

At the same time, we hope that GMRA in the repo sector will receive more application, to promote cross-border repo liquidity. Finally, I expect that more positive measures around reform and opening-up will be implemented in the future, making China’s market more attractive to international participants.

(Caixin reporter Li Ting, Gao Ping)