Yuan Offshore Markets May Pose Policy Threat, BIS Says
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The yuan’s offshore markets could undermine government efforts to control credit markets to avoid asset bubbles, Bank for International Settlements said in a report released today.
Mainland companies are selling yuan-denominated bonds in offshore markets and access to those funds could “accelerate large Chinese firms” exiting from the domestic banking system, posing threats to the predominance of Chinese lenders, according to BIS.