The People’s Bank of China (PBOC) issued 25 billion yuan in renminbi-denominated central bank bills on 19 February via auction in Hong Kong.
This included 10 billion yuan in three-month bills, and 15 billion yuan in one-year bills, with a rates of 2.70% and 2.74% respectively.
According to PBOC the bidding total was approximately 76 billion yuan, or nearly over 3 times the actual issuance amount, indicating that renminbi assets are still highly appealing to offshore investors, and demonstrative of the confidence of global investors in the Chinese economy.
Bidders included multiple national and regional banks from North America, Europe and Asia, as well as central banks, funds and other institutional investors.
According to PBOC the steady issuance of renminbi central bank bills in Hong Kong is of benefit to “diversifying the range of high-credit renminbi investment products and renminbi liquidity management tools on the Hong Kong market, satisfying the investment needs of offshore investors, improving the offshore renminbi yield curve, expediting the development of the offshore renminbi money market, as well as driving other issuers to issue renminbi bonds in offshore markets, and driving internationalisation of the renminbi.”