Moscow Stock Exchange begins trading in Chinese yuan-denominated bonds

The Moscow Stock Exchange has started trading Chinese yuan-denominated bonds as it seeks to attract Asian investors, after initially submitting papers issued by Russian aluminum producer Rusal RUAL.MM, Russia’s largest stock exchange said Wednesday.

The yuan has been in high demand in Russia since February 24, when Russia sent tens of thousands of troops to Ukraine and the West imposed sweeping sanctions on Moscow, limiting its access to dollar and euro markets.

“Debt instruments denominated in Chinese yuan open an additional source of foreign exchange liquidity for Russian borrowers,” said Gleb Shvlenkov, head of the debt market at the Moscow Stock Exchange.

The Moscow Stock Exchange said that in the first half of 2022, the average daily volume of the yuan in the currency trading division increased more than 12 times.

The MICEX said in a statement that the yuan-denominated bonds target a wide range of investors who use the Chinese currency and are designed to expand opportunities for professional market participants and their clients.

“We hope that the emergence of yuan bonds in the Russian market in the future will attract foreign investors, especially Asians,” Shelenkov said.

Two bonds in favor of Rusal RUAL.MM, totaling 2 billion yuan, matured in 2027.


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