CITIC Securities: The process of internationalization of the RMB may accelerate in the future.

The research report of CITIC Securities pointed out that compared to the "steady and prudent promotion of RMB internationalization" proposed in the 14th Five-Year Plan in 2021, the 15th Five-Year Plan proposed in 2025 emphasizes "promoting RMB internationalization," with a more positive expression, and the future RMB internationalization process may accelerate. As of the current point in time, the degree of RMB internationalization can be seen in the relatively leading internationalization process of RMB in the payment field. It is expected that during the 15th Five-Year Plan period, the high-quality construction of the "Belt and Road Initiative" will bring more scenarios and demand for RMB payments. At the same time, benefiting from relatively low financing costs, the financing attributes of RMB continue to be highlighted. However, there is still much room for improvement in the reserve and investment functions of the RMB, especially as China's trade surplus is expected to exceed one trillion US dollars in 2025, translating into high demand for expanding foreign direct investment and foreign securities investment. Based on the experience of opening up the bond market to foreign investors, it is hoped that various types of institutions will be supported in issuing RMB bonds in overseas markets to enrich the variety of investable products, continuously optimize and expand the interconnection mechanisms between the mainland and Hong Kong financial markets, and cultivate a larger offshore RMB market, forming a "surplus in the current account - outward real entity/financial investment" capital virtuous cycle, to further assist in the internationalization of the RMB.