The People’s Bank of China (PBOC) announced on 22 March that it had issued 5 billion yuan in renminbi central bank bills in Hong Kong that day.
The bills have a maturity of six months and a rate of 2.60%, while the total bidding amount was 22 billion yuan.
PBOC said that the issue was broadly welcomed by investors, indicating that renminbi assets are highly appealing to offshore investors, and reflecting the confidence of global investors in the Chinese economy.
“At present PBOC is normalising the issuance of renminbi central bank bills in Hong Kong, not only to diversify renminbi investment products and liquidity management tools in Hong Kong, but also to drive mainland financial institutions, enterprises and other actors to issue renminbi bonds in the offshore market, playing an active role in driving the development of the offshore renminbi market,” said a PBOC spokesperson.
