China’s central bank announced plans to further open its capital markets by supporting more onshore investors to invest in offshore bonds, as part of broader efforts to liberalise financial flows.Earlier re this:China eyes plan to ramp up offshore bond purchases via Southbound ConnectThe People’s Bank of China (PBoC) said it will expand the Bond Connect program to include a wider range of domestic institutions, such as brokers, mutual funds, wealth managers, and insurers. The central bank also pledged to increase the quota under the Swap Connect scheme, allowing more flexible hedging and interest rate swap access.The announcement follows earlier reports that authorities are considering doubling the quota of the Southbound Bond Connect program to the equivalent of USD 139 billion — a move that would mark a significant step in easing capital controls and promoting two-way market access.The measures align with Beijing’s broader goal of enhancing the global role of the yuan, while also diversifying investment channels for domestic institutions. This article was written by Eamonn Sheridan at www.forexlive.com.