The move comes against a backdrop of rising tension with the US over issues including trade and the crackdown on Hong Kong. Weighed down by the virus outbreak, China's economy is poised for its slowest expansion this year in four decades.
The participation of foreign investors has helped make the Chinese stock market"more rational" and valuations"more reasonable", Mr Fang said. The long bear market sessions and short bull runs that have long plagued China are"disappearing", he said. China last year removed the ceiling on quotas for foreign investors to buy stocks and bonds, after also easing rules in 2018. The country is pushing to increase use of the yuan in international transactions, while also attracting more foreign capital.
The yuan-denominated financial assets' appeal to international investors has been growing as more central banks use the Chinese currency in their foreign reserves, Chen Yulu, deputy governor at the People's Bank of China, said at the forum. Foreigners' holdings of such domestic assets jumped 37 per cent to 7.7 trillion yuan as of July 31 from a year earlier, he said.
The yuan can assume"greater international responsibilities" in the future as China's opening up deepens, he said.For daily updates on weekdays and specially selected content for the weekend. Subscribe to