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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