BRICS-Led Development Bank Touts Yuan Funding for Global South

China’s onshore bond market, backed by ample liquidity and a stable currency, is emerging as an attractive funding source for developing economies, according to the BRICS-led New Development Bank.

With borrowing costs low, the Chinese bond market “is now one of the most cost-effective funding sources in the world,” Zhongxia Jin, the bank’s director general for treasury and portfolio management, said in Beijing on Tuesday. “We don’t just see the Chinese bond market as a source for cheap cash, we see this market as the future of local currency finance.”