Most of China's national debt is purchased by domestic institutional investors (banks, insurance, etc.). ) and individuals. However, the Ministry of Finance also directly auctions a small amount of government bonds overseas. China issues RMB government bonds in US dollars, and foreign institutional investors can buy them directly in US dollars. China has also issued people-denominated government bonds overseas, and foreign central banks (such as Southeast Asian countries) and institutional investors are also scrambling to buy them. The interest rate is even very low, because they are optimistic about the appreciation trend of RMB assets.

The reason why China has not issued large-scale RMB bonds overseas is that the RMB is not fully convertible, and it is difficult for foreign investors to directly exchange foreign exchange such as US dollars through the Central Bank of China. Second, there is no circulation market for RMB government bonds overseas, and most investors hold them after buying them, and there are few transactions in the secondary market. Therefore, Hong Kong has been working hard to build an offshore RMB government bond trading market, which is in line with this trend.

In the future, the large-scale circulation of RMB government bonds overseas will be the general trend. When Wang Qishan visited Britain a few days ago, he also said that he supported London to build an offshore RMB market, which was what he meant. This will also be an important step in the internationalization of the RMB, because China government bonds can be traded freely in the market, which means that the liquidity of assets has increased a lot, which will make China government bonds have a premium; At the same time, China government bonds with good liquidity will surely become the new favorite of foreign central banks, which means that RMB will become the foreign exchange reserves of other countries (now Malaysian and Nigerian countries have included RMB in their foreign exchange reserves). I believe that in the next three to five years, we will see more cases of RMB becoming foreign exchange reserves of other countries.