HSBC to list yuan bonds in London
Source: Bloomberg News |
April 19, 2012, Thursday
|
Print Edition
Print Edition
HSBC Holdings Plc, Europe's largest lender by market value, will be the first European bank to list an international yuan-denominated bond in London as the capital seeks to become a hub to trade the currency.
The bank set the size of the offering of three-year notes at 2 billion yuan (US$320 million), a person familiar with the offering said yesterday. The securities will be priced to yield 3 percent, after the price guidance for the deal was revised from a range of 3 percent to 3.25 percent.
"It represents another step in London's development as a premier international trading center for the yuan and is an early sign of the huge potential that this market represents," CEO Stuart Gulliver said in a statement.
London is seeking to become a hub for yuan trade and investment in an initiative backed by Bank of China Ltd, Barclays Plc, Deutsche Bank AG, Standard Chartered Plc and HSBC. Institutions in the UK have more than 109 billion yuan (US$17.3 billion) of customer and interbank deposits in the Chinese currency in London, according to a policy paper by research firm Bourse Consult and released yesterday.
Chancellor of the Exchequer George Osborne said yesterday he hopes to see Chinese companies issuing bonds and products in London. The Treasury and Hong Kong Monetary Authority agreed in January to provide help with a forum for banks to look at clearing and settlement systems, market liquidity and the development of new yuan products.
The city has 26 percent of the offshore yuan market, Osborne said. The market grew 80 percent last year and most of the business is conducted in Hong Kong, he said.
"We are not prepared to let anyone steal a march on us when it comes to new products and new markets." Osborne said. "In the coming decades it is China that will act as a powerhouse of the world economy."
Standard Chartered CEO Peter Sands said in March he hoped London this year would become an offshore yuan center.
The bank set the size of the offering of three-year notes at 2 billion yuan (US$320 million), a person familiar with the offering said yesterday. The securities will be priced to yield 3 percent, after the price guidance for the deal was revised from a range of 3 percent to 3.25 percent.
"It represents another step in London's development as a premier international trading center for the yuan and is an early sign of the huge potential that this market represents," CEO Stuart Gulliver said in a statement.
London is seeking to become a hub for yuan trade and investment in an initiative backed by Bank of China Ltd, Barclays Plc, Deutsche Bank AG, Standard Chartered Plc and HSBC. Institutions in the UK have more than 109 billion yuan (US$17.3 billion) of customer and interbank deposits in the Chinese currency in London, according to a policy paper by research firm Bourse Consult and released yesterday.
Chancellor of the Exchequer George Osborne said yesterday he hopes to see Chinese companies issuing bonds and products in London. The Treasury and Hong Kong Monetary Authority agreed in January to provide help with a forum for banks to look at clearing and settlement systems, market liquidity and the development of new yuan products.
The city has 26 percent of the offshore yuan market, Osborne said. The market grew 80 percent last year and most of the business is conducted in Hong Kong, he said.
"We are not prepared to let anyone steal a march on us when it comes to new products and new markets." Osborne said. "In the coming decades it is China that will act as a powerhouse of the world economy."
Standard Chartered CEO Peter Sands said in March he hoped London this year would become an offshore yuan center.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
