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Most trade in yuan is conducted through Hong Kong, where Beijing also has created a market for yuan-denominated bonds that McDonald's Corp. and some other foreign companies have used to raise money to invest in their mainland operations. The easing of controls on bond sales could help to reduce costs for Japanese companies that need to raise money to invest in their China operations. The communist government keeps China's bond and other financial markets sealed off from global financial flows. That helped the country avoid the turmoil of the 2008 global financial crisis but has slowed the development of markets that Chinese leaders want to support economic development. The latest pledges also might help to promote moves to allow the yuan to trade more freely on currency markets. The United States and other trading partners complain that Beijing's currency controls keep the yuan undervalued, giving China's exporters an unfair price advantage and hurting foreign competitors at a time when the global economy is struggling.
[Associated
Press;
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