RMB Photo: VCG

Foreign investors have become more willing to hold yuan-denominated assets in 2020 as the Chinese financial market shows stability and strong resilience amid global turbulence, said a former head of China's securities regulator on Saturday.

"Since the beginning of the year, the Chinese financial market has remained relatively stable and has shown strong resilience compared with the international market," said Xiao Gang, former chairman of the China Securities Regulatory Commission, at the 2020 International Monetary Forum, adding that yuan assets' global appeal is growing.

The number of IPOs in Shanghai and Shenzhen stock markets surpassed those of the NASDAQ and the New York Stock Exchange (NYSE). China's bonds market has developed relatively fast, and the foreign exchange market has maintained a basic balance, Xiao noted.

Before a sharp correction due to escalating China-US tensions on Friday, China's A-share market had experienced a rally driven by an economic recovery in the few past weeks. Chinese bonds have also become a new safe haven for foreign investors according to the Wall Street Journal on July 13.

Chinese assets have long-term investment value, especially their structural value. The safety, profitability and robustness of yuan assets are outstanding. The Chinese capital market has become one of the largest markets in the world, Xiao said.

The former securities regulator chief also suggests multinationals to set up global or regional funds management centers in China to increase investment into the country.

China should further coordinate the opening-up of financial markets including stocks, bonds, futures, and foreign exchange, while increasing financial products and enriching investment tools, Xiao said.

Global Times