SimpleXML Cyrillic Encoding

This is the type of XML file, which I am using:

<?xml version="1.0" encoding="UTF-8"?>
<ProductCatalog>
 <Prod开发者_运维问答uctType>Дънни платки</ProductType>
 <ProductType>Дънни платки 2</ProductType>     
</ProductCatalog>

And when I run the PHP file with the following code:

$pFile = new SimpleXMLElement('test.xml', null, true);      
foreach ($pFile->ProductType as $pChild)
{
var_dump($pChild);
}

I get the following results:

object(SimpleXMLElement)#5 (1) { [0]=> string(40) "Дънна платка наÑтолна"

I have tried different encodings in the XML file but it's not working well with Cyrillic symbols.

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What happens if you switch Character encoding (to utf-8) in browser? I mean, looks like output issue.