Offshore RMB bonds will grow moderately in 2015, though offshore issues declined year on year in Q1 on the back of falling onshore interest rates, a Moody's report said on Tuesday.
China's "Belt and Road" initiative and the establishment of the Asian Infrastructure Investment Bank (AIIB) further bolstered the use of RMB in cross-border transactions and investments, said Ivan Chung, a Moody's senior vice president.
The International Monetary Fund's upcoming decision whether to include the RMB in the special drawing rights basket could be key to RMB internationalization and lead to a considerable increase in investors' asset allocations to RMB-denominated assets, Chung said.
On the onshore bond market, Moody's report highlights the first public bond default in March 2014 and three recent cases in May and June 2015, that signal the regulators' increased tolerance for such defaults, and let the markets play a more decisive role in restructuring.
