China's issuance of offshore yuan bonds reaches an all-time high of 870 billion yuan.

Record Growth in Offshore Yuan Bonds: The offshore yuan bond market in China is experiencing unprecedented growth, with issuances reaching approximately 870 billion yuan ($123 billion) this year, marking the eighth consecutive year of expansion and reflecting a shift towards the yuan as a major global currency.

Long-Term Funding Confidence: Low interest rates in China have driven a surge in long-dated bonds, with a record number of dim sum bonds maturing in at least 10 years sold this year, indicating increased confidence in the yuan's long-term stability as a reserve currency.

Impact of Currency Movements: The depreciation of the US dollar against the yuan has prompted investors to diversify their portfolios, leading to a rise in demand for offshore yuan bonds as firms seek to refinance dollar-denominated debts at lower costs.

Regulatory Support and Market Challenges: The expansion of the Southbound Bond Connect program and potential increases in investment quotas are expected to enhance demand and liquidity in the yuan bond market, despite ongoing challenges such as thin trading and limited hedging options.