The likelihood that the Chinese yuan is included in the special drawing rights (SDR) basket by the International Monetary Fund in November will increase demand for yuan-denominated bond fund products.
That’s the view of Andy Seaman, who runs the Stratton Street Ucits Renminbi Bond fund, and is also a partner at London-based Stratton Street Capital.
Seaman told Citywire Asia the possible yuan inclusion in the SDR basket will be a major step towards the currency’s internationalisation. The move will also require investors to adjust the weightings of yuan-denominated assets.
Source:http://citywireasia.com/news/china-expert-how-yuan-s-sdr-inclusion-will-affect-bond-markets/a845849