The trade war started by the United States is really serving China accomplish one of its desired long-term financial goals – the superior use of its money, the Yuan, in international trade and financial transactions.
As of the end of the second quarter, foreign institutional and individual assets of yuan-denominated financial resources totaled $720 billion, according to International institutes, the Hong Kong investment funding of Manufacturing and Commercial Bank of China, one the country’s big four banks. Within that entire, the share of yuan-denominated stocks and bonds as a fraction of total assets held by worldwide investors enlarged to about 2.5% and 3.0%, correspondingly.
Furthermore, the holdings of yuan possessions by global central banks enlarged for a third straight quarter to 1.39% in the first quarter this year, edging up from 1.22% at the end of 2017 and 1.08% at the end of 2016, when the International Monetary Fund began broadcasting central banks’ yuan distributions after the Chinese currency was included in its Special Drawing Rights currency basket in November 2015.
