Related News

Home » Business » Finance

HSBC, BEA gain vital nod on yuan bonds

HSBC and the Bank of East Asia yesterday said they have gained state approval to be the first domestically-incorporated overseas banks to issue yuan bonds in Hong Kong.

The two banks yesterday declined to give a timetable and scale of the issuance.

Richard Yorke, president and chief executive officer of HSBC China, said the bank was pleased with the go-ahead.

"HSBC is extremely liquid and strongly capitalized, we support this initiative and have been working closely with China's regulators in the development of the yuan financial markets, both onshore and offshore," Yorke said.

Sun Minjie, executive vice president of BEA China, echoed the views.

"The initiative showed the central government's support to the offshore yuan market in Hong Kong," Sun said. "For us, it offers another capital channel in Hong Kong, where investors are familiar with our bank."

HSBC, Europe's biggest bank, and BEA, the third-biggest bank in Hong Kong, set up locally-incorporated subsidiaries in Shanghai in 2007 as the first batch of overseas banks to go local on the Chinese mainland to gain access to the yuan retail market.

"We believe that a yuan issuance by HSBC China will help establish a representative pricing benchmark for foreign banks requiring funding and will help the development of Hong Kong's offshore yuan market," Yorke said.

BEA has 90 branches in Hong Kong and more than 60 on the mainland and about 30 in the United States, Canada and the United Kingdom.

In December, the State Council said Hong Kong firms and financial bodies with heavy business on the mainland can issue yuan bonds in Hong Kong.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend