(Yicai Global) Nov. 7 -- The People's Bank of China issued a total of CNY30 billion (USD4.3 billion) in central bank bills in Hong Kong today to meet the needs of offshore investors.
The market welcomed the move, with total subscriptions topping CNY64 billion, over twice the issue.
The instruments include CNY20 billion in three-month yuan-denominated bills and another CNY10 billion in one-year bills, both sold with 2.9 percent coupons, the PBOC said in a statement today. Main subscribers are commercial banks, central banks, international financial institutions, funds and other offshore market investors from Europe, the US, Asia and other countries and regions.
The notes will expand the range of yuan-backed financial products with high credit ratings and yuan-dominated liquidity management tools in the Hong Kong market, and improve the offshore yuan's yield curve, the PBOC said, adding it will also promote other issuers to offer yuan bonds in the offshore market to boost its development and the redback's internationalization.
The PBOC issued yuan-dominated central bank bills for the first time in November last year. It has sold a total of CNY160 billion of these notes in 13 issues in Hong Kong since then and gradually fallen into a routine for this roll-out.
Editor: Ben Armour