China to Issue Renminbi Bonds to Offshore Investors

By Robert Cookson in Hong Kong

China will issue sovereign bonds denominated in its own currency to offshore investors for the first time this month – a crucial step towards making the renminbi a global currency.

The country’s finance ministry said it would issue Rmb6bn ($879m) of bonds in Hong Kong on September 28, in a move to “improve the international status” of the currency and to help mainland companies raise funds in the offshore bond market.

“While the amount is not large, this is a significant development for the internationalisation of the renminbi and for the development of the Hong Kong bond market,” said Wensheng Peng, an economist at Barclays Capital.

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