China’s central bank issues CNY10B bills in Hong Kong

BEIJING (XINHUA) – China’s central bank yesterday issued CNY10 billion (about USD1.41 billion) of six-month RMB central bank bills in Hong Kong with an interest rate of 2.19 per cent.

Against the background of the recent increase in global financial market volatility, the issuance of the RMB central bank bills in Hong Kong is still widely welcomed by overseas investors, the People’s Bank of China (PBOC) said in an online statement.

Institutional investors such as banks, central banks and funds from the United States (US), Europe, Asia and other countries and regions, as well as a number of international financial organisations, participated in the subscription, with the total amount of bids above CNY35 billion, 3.5 times the circulation.

This indicates RMB assets have a strong attraction to overseas investors and also reflects the confidence of global investors in China’s economy, the central bank said.

Since November 2018, the central bank has gradually established a normal mechanism for issuing RMB central bank bills in Hong Kong through issuing central bank bills with maturities of three months, six months and one year at a relatively stable frequency.

This issue is a due rolling issue, and after this, the balance of RMB central bank bills in Hong Kong is still CNY80 billion, the central bank said.

The stable and continuous issuance of RMB central bank bills in Hong Kong is conducive to enriching the series of RMB investment products with high credit rating, and the RMB liquidity management tools in the Hong Kong market, it said.

It can help meet the needs of investors in the offshore market, improve the offshore RMB yield curve, boost the development of the offshore RMB money market, and drive other issuers to issue RMB bonds in the offshore market to promote the internationalisation of RMB, the central bank said.