China's Ministry of Finance (MOF) on Thursday issued yuan-denominated treasury bonds worth 10 billion yuan (1.57 billion U.S. dollars) to institutional investors in Hong Kong.
Another 2 billion yuan of treasury bonds will be issued to individual residents of Hong Kong starting from Nov. 27 and lasting until Dec. 14, the MOF said. Meanwhile, the ministry on Thursday also floated 2 billion yuan of treasury bonds to five foreign central banks and local monetary authorities.
Hong Kong has been given the unique position in floating yuan-denominated treasury bonds, because the majority of offshore renminbi is traded in Hong Kong and it is Chinese territory, according to China's Finance Minister Lou Jiwei.
The MOF started selling yuan-denominated treasury bonds in Hong Kong in September 2009 to support Hong Kong's economy and speed up the expansion of offshore yuan business.
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