China Should Expand Yuan Gov Bonds For Foreign Investors: Daily

China should expand the issuance of yuan-denominated treasury bonds as "safe-haven assets" for foreign investors to raise the country's status in the global financial system, China Daily reported citing Zhang Ping, the deputy director of the National Institution for Finance and Development. To promote yuan usage, China should allow more foreign investors to hold yuan assets, either under the capital account or through the opened yuan-denominated financial product trading, the newspaper said citing Zhou Chengjun, director of the PBOC's Financial Research Institute. China's internationalization of the RMB is not to challenge the U.S. dollar but to reduce yuan volatility, the newspaper cited Zhou as saying.