Pan Gongsheng: the medium-and long-term allocation value of RMB assets becomes more prominent during the downward period of the global financial cycle.

Pan Gongsheng: the medium-and long-term allocation value of RMB assets in the downward period of the global financial cycle is more prominent. Pan Gongsheng, director of the State Administration of Foreign Exchange, said at the 14th Lujiazui Forum (2023) on June 8 that during the downward period of the global financial cycle, the medium-and long-term allocation value of RMB assets has become more prominent. On the one hand, the real return on RMB assets is competitive. In the context of high inflation in the world's major economies, China's real interest rates remain high, highlighting the ability to preserve the value of the renminbi; on the other hand, the correlation coefficient between Chinese bonds and global equity returns remains in a negative range, highlighting the risk diversification value of RMB bonds.