Yu Yuan Tan Tian: The Renminbi is transitioning from a transaction currency to an asset currency.

On February 12, the offshore and onshore RMB against the US dollar broke through the 6.9 level, reaching the highest level in 33 months since May 4, 2023. One of the special features of this round of appreciation is that the demand for the RMB overseas is increasing, and the demand structure is changing. The usage of the RMB is expanding. Overseas investors are generally increasing their holdings of RMB-related assets. By the end of the third quarter of 2025, the size of RMB assets held by overseas investors has increased to 10.42 trillion yuan, reaching a new high in nearly 43 months. Currently, the market value of Chinese stocks held by overseas investors exceeds 3.5 trillion yuan, making them an important participant in the Chinese stock market. On the other hand, more issuers are starting to consider the RMB as an optional financing currency. Central banks around the world are optimizing their reserve structures, increasing their holdings of gold and the RMB, essentially promoting the diversification of reserve assets. Currently, the external environment is changing, the credibility of the US dollar is wavering; the currency status is changing, and multiple currencies are replacing the US dollar. The exchange rate may still fluctuate in the future, but at least from the current trend, the RMB is increasingly being seen as a currency that can be traded, allocated, and used for financing.