Another big step for currency's internationalization
The Ministry of Finance on Monday announced the sale of 3 billion yuan ($457.8 million) in bonds in London, another big step for the internationalization of the Chinese currency.
With the approval of the State Council, China's cabinet, the ministry will "in the coming days" issue the bonds, which will be traded on the London Stock Exchange, the ministry said Monday in a short statement on its website Monday. Bank of China (UK) Ltd and UK-based HSBC will be global coordinators.
These will be the first yuan-denominated sovereign bonds to be sold outside of Hong Kong, Bloomberg reported on April 19, when the issue was still under consideration.
The move is another big step for the internationalization of the yuan, which China has been pushing in recent years, media reports said.
The People's Bank of China (PBOC), the central bank, issued 5 billion yuan worth of 1-year notes in London on October 20, 2015, coinciding with President Xi Jinping's State visit, where Chinese-UK relations were considered to enter a "golden era."
It was the first time the PBC issued yuan-denominated notes outside of China, the central bank said in a statement at the time.
"This helps not only to broaden the offering of high-credit rating yuan-denominated financial products in the offshore market, but also to deepen the development of the offshore market for the yuan," the PBC said. "It is also conducive to the promotion of cross-border trade and investment."
The yuan gained further international status, after a decision by the IMF to include the currency in its Special Drawing Rights basket last year.
