China allows BEA to sell second yuan bonds in HK

China has allowed the Bank of East Asia (BEA) to issue yuan-denominated bonds in Hong Kong for a second time, about three years after it became the first foreign-invested bank to make a yuan bond issuance, the bank said Wednesday.

BEA China Ltd, a wholly-owned subsidiary of the BEA, was given the approval by the National Development and Reform Commission of China to issue yuan bonds in Hong Kong, it said.

Details on the amounts and timing of the offerings weren't available. In 2009, in a major landmark, the BEA issued its first yuan bonds in Hong Kong in an aggregate principal amount of 4 billion yuan (US$630 million).

The BEA was among the first foreign-invested banks to be given the green light to issue yuan-denominated bonds in Hong Kong, a move analysts say will bolster the international influence of the Chinese currency, also known as renminbi.

Sun Minjie, deputy head of BEA China, said the second bond issuance will give the bank stable access to capital, improve its debt portfolio, and support its development on the Chinese mainland.