Recent fluctuations in Hong Kong's offshore yuan market are market-driven and the central bank's support for the market remains unchanged, officials said Saturday. [Special coverage]
The issuance in Hong Kong of dim sum bonds, bonds denominated in yuan but issued outside Chinese mainland, dipped and Hong Kong's pool of yuan shrank recently.
The changes were driven by the market, said Zhou Xiaochuan, central bank governor, at a press conference on the sidelines of the annual parliamentary session.
He added that the financial market is inherently prone to fluctuation.
The fluctuations were largely due to the market's expectation of the value of yuan, said Yi Gang, vice governor of the central bank.
As the expectation stabilizes, the offshore yuan market's advantages would be back, Yi said.
"The development of Hong Kong's offshore yuan market is unchanged. The market's business will expand further," he said.
