China's domestic bond market, thanks to abundant liquidity and a stable yuan, is rapidly becoming a key source of financing for developing economies.
Speaking in Beijing on Tuesday, Zhongxia Jin, Director General of the NDB's Treasury and Portfolio Management Department, emphasized that low borrowing costs make the Chinese debt market "one of the most cost-effective sources of financing in the world."
"We don't just view the Chinese bond market as a source of cheap money. We see this market as the future of local currency financing," Jin said.
According to the bank's representative, yuan-denominated financing provides developing countries with a natural safety net when implementing large-scale infrastructure projects. This is especially relevant for countries in Latin America (e.g., Brazil) and Asia (India, Indonesia, and the Philippines).
Such loans are ideal for long-term initiatives, particularly green energy transition projects, which traditionally suffer from the volatility of local currencies against the dollar.
The New Development Bank's assessment is fully consistent with Beijing's global strategy to enhance the role of the yuan in the global financial system. Jin's words serve as a powerful signal that issuance volumes and liquidity for foreign issuers in China's domestic bond market will only increase.
"The Chinese debt market is no longer just an alternative asset class. It has every potential to become a key pillar of the global financial architecture," Jin concluded, noting the yuan's low rates and relative stability amid global crises.
According to Bloomberg, the BRICS New Development Bank has issued five yuan-denominated bonds totaling RMB 25 billion ($3.6 billion) in 2025. This marks the bank's all-time highest annual borrowing since its entry into this market in 2016.