MNI INTERVIEW: Shanghai Speeds Up Global RMB Assets Hub Push

Shanghai is accelerating efforts to establish an international centre for RMB-denominated asset allocation and risk management, aiming to become a global financial hub by 2035, the president of the People’s Bank of China Shanghai Head Office told MNI.

The market for RMB-denominated assets is a key pillar of Shanghai’s drive to become an international financial centre and represents “a distinctive competitive advantage for the city”, said Jin Penghui, a deputy to the 14th National People's Congress.

The city will optimise the issuance framework for Free Trade Zone (FTZ) offshore bonds, support overseas institutions’ participation in China’s Qualified Foreign Limited Partner (QFLP) scheme, and continue advancing market rules and systems for RMB commodity pricing, he said.

FTZ offshore bonds have broadened financing channels for Chinese companies with overseas businesses and for enterprises in countries participating in the Belt and Road Initiative, Jin added. (MNI INTERVIEW: HK Offshore RMB Bond Market To Expand)

Borrowers have issued four FTZ offshore bonds since June 2025, with the most recent being a CNY200 million deal launched in January by Orient Securities with a 1.88% coupon, according to the Shanghai Clearing House (SHCH).

QFLP

Shanghai is also exploring ways to broaden the investment scope and methods of its QFLP scheme, allowing investment in funds of funds (FOFs) and other vehicles, Jin said. 

By the end of 2025, 100 institutions in Shanghai had obtained QFLP pilot qualifications, with most investments directed toward high-tech fields such as biomedicine, information technology, environmental protection, new energy, new materials, integrated circuits, and advanced manufacturing, he noted.  

Shanghai will also welcome international asset management firms and sovereign wealth funds to establish branches or specialised institutions in the city, the official pointed out.  

COMMODITIES PRICING

In addition to further improving institutional settings, the PBOC’s Shanghai Head Office will work to foster a transparent and representative "China Price" denominated in RMB for commodities, providing global investors with diverse options and facilitating international trade, investment, and cooperation, Jin said.

While an increasing number of countries and regions are beginning to emphasise the use of local currencies for pricing and settlement, global commodity trading remains strongly path-dependent on the choice of trading venues and currencies. Chinese commodity exchanges and the scope of RMB settlement need further improvement, he added. (See MNI INTERVIEW: Mid-East Conflict Is Chance To Promote Yuan Use )

Joint efforts have been made to promote benchmark RMB-denominated commodities such as “Shanghai Oil” and “Shanghai Copper” to the international market, Jin said. The Shanghai Gold Exchange (SGE) has enriched its international board, guiding more Chinese financial institutions and enterprises to increase global gold allocations, and boosting the global influence of the “Shanghai Gold” benchmark, while the Shanghai Petroleum and Natural Gas Exchange (SHPGX) is promoting RMB settlement for oil and gas trade. 

Meanwhile, the SHCH covers multiple sectors including shipping, non-ferrous metals, ferrous metals, energy, chemicals, carbon emissions and agricultural products, with clearing amounts exceeding CNY3.6 trillion.