(Yicai Global) Oct. 5 -- As of the end of August, overseas institutions held CNY3.55 trillion (USD507.14 billion), or 2.5 percent, of the outstanding bonds in custody in China's bond market, according to the central bank.

Specifically, their holdings in the interbank bond market amounted to CNY3.48 trillion.

In terms of bond type, overseas institutions held CNY2.3 trillion, or 66.9 percent, of treasury bonds, and CNY800 billion, or 23.4 percent, of policy financial bonds.

China announced in May that it would further facilitate foreign institutional investments in its bond market and coordinate the opening-up of the interbank and exchange bond markets.

The country aims to increase the diversity of investors, while improving the liquidity and stability of its bond market, according to an announcement jointly issued by the central bank and top securities and foreign exchange regulators. The declaration came into effect on June 30, 2022.