BEIJING -- As of the end of August, overseas institutions held 3.55 trillion yuan ($507.14 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 3.48 trillion yuan.

In terms of bond type, overseas institutions held 2.3 trillion yuan, or 66.9 percent, of treasury bonds, and 800 billion yuan, 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.