Sergey Stankevich
China continues to expand the yuan into the global financial system. For now this is reconnaissance in force.
In May 2024, China issued government debt bonds with maturities of 30 and 20 years, which was enthusiastically welcomed by international investors who lined up.
And then came the next shot. China on June 14 listed its first batch of 50-year ultra-long maturity special treasury bonds totaling $4.82 billion with an interest rate of 2.53% on the Beijing Stock Exchange. The “super long” releases will be completed by mid-November this year. Again there were many more people willing to buy than there were papers.
The great enthusiasm on the part of financial institutions is understandable. It is now convenient for many countries to invest their gold and currency reserves in such bonds. You won’t be robbed like in the West.
The example of freezing and attempts to confiscate Russian assets is before everyone’s eyes. Russia is intensively transferring its reserves to Chinese assets. Many will follow this example.
Yuri Chekalin
Lucy Dickerson
