Bonding ties through issue of yuan debt
By Hu Xiaocen |
June 29, 2012, Friday
|
Print Edition
Print Edition
CHINA yesterday started issuing 23 billion yuan (US$3.64 billion) of yuan-backed treasury bonds in Hong Kong to cement ties between the Chinese mainland and the city.
The issuance is the fourth and the biggest following the sale of 6 billion yuan in yuan-backed treasury bonds in 2009, 8 billion yuan in 2010 and 20 billion yuan in 2011.
The Ministry of Finance said in a statement posted on its website yesterday that 15.5 billion yuan worth of bonds were sold to institutional investors through the bond-tendering platform of the Hong Kong Monetary Authority. Meanwhile, another 2 billion yuan were offered to other central banks. The offering was sold out yesterday morning. The remaining 5.5 billion yuan will be sold to individual investors who can purchase them from retail counters at banks from today to July 13.
"The bonds will be listed on the Hong Kong stock exchange for trading," said the ministry. "The issuance will expand the depth and breadth of Hong Kong's bond market and help with building the city into an offshore yuan center."
Since the offshore yuan-denominated bond market started in Hong Kong 2007, it has grown rapidly and by April the value of issued dim sum bonds topped 218.4 billion yuan, according to HKMA.
The State Council, China's Cabinet, unveiled policies on Wednesday to strengthen economic and financial ties between the mainland and Hong Kong ahead of the 15th anniversary of the city's return to Chinese rule.
The issuance is the fourth and the biggest following the sale of 6 billion yuan in yuan-backed treasury bonds in 2009, 8 billion yuan in 2010 and 20 billion yuan in 2011.
The Ministry of Finance said in a statement posted on its website yesterday that 15.5 billion yuan worth of bonds were sold to institutional investors through the bond-tendering platform of the Hong Kong Monetary Authority. Meanwhile, another 2 billion yuan were offered to other central banks. The offering was sold out yesterday morning. The remaining 5.5 billion yuan will be sold to individual investors who can purchase them from retail counters at banks from today to July 13.
"The bonds will be listed on the Hong Kong stock exchange for trading," said the ministry. "The issuance will expand the depth and breadth of Hong Kong's bond market and help with building the city into an offshore yuan center."
Since the offshore yuan-denominated bond market started in Hong Kong 2007, it has grown rapidly and by April the value of issued dim sum bonds topped 218.4 billion yuan, according to HKMA.
The State Council, China's Cabinet, unveiled policies on Wednesday to strengthen economic and financial ties between the mainland and Hong Kong ahead of the 15th anniversary of the city's return to Chinese rule.
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