The Chinese central bank successfully issued 25 billion yuan (approx. USD$3.89 billion) in renminbi central bank bills (CBB) on Friday 21 May in Hong Kong.
The issue included 10 billion yuan in 3-month CBB with a rate of 2.48%, and 15 billion yuan in one-year CBB with a rate of 2.63%.
The total bidding amount was 68.2 billion yuan, while bidding participants included banks, central banks and funds from multiple countries and regions around the world.
An official from the People’s Bank of China (PBOC) said that the authority was currently in the process of normalising the issuance of renminbi CBB via Hong Kong, in the wake of the increasing issuance of renminbi government bonds, finance bonds and corporate bonds in the offshore market.
According to PBOC the issuance of CBB serves to diversify renminbi investment products and liquidity management tools in Hong Kong, and plays an active role in spurring the growth of the offshore renminbi market.