China sells first yuan bonds outside of mainland

ValkyrieLenneth · 29-09-2009, 08:39 AM

China has begun selling government bonds in Hong Kong denominated in its own currency, the yuan.

These are the first such sovereign bonds to be sold outside of the mainland.

A ceremony to mark the start of the sale was held in Hong Kong on Monday. Officials of the Chinese government and the Hong Kong special administrative region attended.

China's Vice Finance Minister Li Yong said that the bonds sale is aimed at developing the yuan business in Hong Kong.

Bonds worth a total of 6 billion yuan, or 875 million dollars, have been issued in three types -- a 2-year bond, a 3-year bond, and a 5-year bond.

The bonds are being sold at 19 financial institutions in Hong Kong, with one third of them allocated to individual investors.

China apparently wants to make the yuan an international currency by expanding the area of its circulation, but it remains to be seen how investors respond.

2009/09/28 19:20(JST)
(JST: UTC+9hrs.)

http://www.nhk.or.jp/daily/english/28_33.html

**fgfmse** · 29-09-2009, 10:05 AM

that is good, another financial instrument who is back by a strong economic giant to play with by the financial market