Moody's Investors Service says that the inclusion of the renminbi in the International Monetary Fund's (IMF) Special Drawing Rights (SDR) basket will provide a confidence boost for global investors whose appetite for RMB-denominated assets has been dampened recently.

"The fact that the RMB is now included in the SDR basket is a recognition of China's commitment to reform its financial sector and liberalize its capital account, and will support market-oriented reforms," says Ivan Chung, a Moody's Associate Managing Director and Head of Greater China Credit Research and Analysis.

"We expect China will expedite reforms for both onshore and offshore bond investors and issuers," adds Chung.

Chung was speaking on the release of Moody's just-published "Renminbi Bonds Monitor", a quarterly report that provides an update on China's onshore and offshore RMB bond markets, and Moody's views on market trends on the Mainland.

In particular, Moody's expects increased issuance of Panda bonds and larger quotas for cross-border investment avenues such as the Qualified Domestic Institutional Investors and Qualified Foreign Institutional Investments programs.

The move comes as falling Chinese interest rates have led to many Chinese corporate issuers to switch to the onshore debt markets due to lower funding costs.

Foreign corporate and financial institutions continued their strong issuance momentum in offshore RMB bond market but, despite this, Q3 2015 recorded the lowest quarterly issuance since Q4 2011.

Meanwhile, investors in the onshore market continue to be undeterred by the default events and some issuers reporting difficulties repaying public bonds.

For the first ten months of 2015, public bonds issued in onshore market by corporates reached a record RMB4.5 trillion, exceeding the highest annual issuance.