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Chinese Economist Ju Jiandong Proposes $10 Trillion Yuan-Denominated Sovereign Bond Issuance

Tsinghua PBCSF chair professor Ju Jiandong proposed on September 19 issuing 10 trillion yuan in yuan-denominated sovereign bonds to foreign investors, a sum equal to about 7.13% of China’s projected 2025 nominal GDP. Speaking at the Tsinghua PBCSF Chief Economists Forum, Ju said the issuance would deliver a “triple rebalancing”: of external assets and liabilities, of domestic demand, and of central versus local government finances.

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AI take

The proposal's significance lies less in the headline figure than in its framing: a yuan-denominated sovereign bond aimed at foreign investors would, in effect, test whether global demand exists for renminbi assets at a scale far beyond current issuance. It touches Beijing's long-running goals of internationalizing the currency and rebalancing external assets and liabilities, while the domestic-demand and central-local components signal it is also a fiscal argument, not just a capital-markets one. Whether such a proposal moves from a forum speech into policy discussion is the open question.

Generated by AI for reference only.

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