The Chinese yuan is moving towards a portfolio integration phase, with institutions increasingly relying on the currency for trade, investment, financing and reserve management, HSBC said in a new report.

According to a survey of 120 institutions, 66% of respondents said they were allocating to RMB assets for diversification benefits.

"RMB is increasingly being incorporated into portfolios as a diversifier that can help absorb shocks across different liquidity and growth cycles and market dynamics," HSBC said.

Meanwhile, 87% of institutions already had access to RMB markets, reflecting a broader transition from availability to usability, HSBC said.