China expert: how yuan’s SDR inclusion will affect bond markets

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.

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