 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
| . |  |
. |
Hong Kong (AFP) Dec 1, 2010 China says its second yuan-denominated bond issue in Hong Kong has initially raised five billion yuan (750 million US dollars), as Beijing tries to internationalise its currency. Strong interest pushed demand to almost 10 times the offering's allotment for institutional buyers, with another three-billion yuan worth of two-year bonds to be offered to retail investors from December 7-14, China's finance ministry said Tuesday. The move follows Beijing's first yuan-denominated bond issue in Hong Kong in September last year, worth about six billion yuan. It also comes after heavy equipment maker Caterpillar and fast-food giant McDonald's both announced plans for yuan-denominated bond issues in Hong Kong. The semi-autonomous Chinese territory is acting as a test bed for internationalising China's currency. Beijing is seeking to broaden the use of the yuan in the financial hub after approving its use to settle cross-border trade in 2009. The finance ministry offered five billion yuan of bonds to institutional investors with maturities of three, five and 10 years. The three-year bond's coupon was fixed at one percent, the five year coupon at 1.8 percent and the 10 year coupon at 2.48 percent. The three-year bond's relatively low interest rate reflected strong interest in the issue. The Hong Kong Monetary Authority, the city's de facto central bank, released figures Tuesday that showed strong investor interest in yuan assets. The authority said that yuan deposits surged 45.4 percent, reaching 217.1 billion yuan, in October compared to September, due to an increase in yuan receipts in trade settlement transactions. "Hong Kong has seen over 20 yuan bond issues since June 2007, totalling over 50 billion yuan," Hong Kong Chief Executive Donald Tsang said at a launch ceremony for the issue on Tuesday. Yuan "bond issues in Hong Kong have all along been oversubscribed. This shows people's confidence in Hong Kong as an offshore (yuan) centre." In July the two central banks signed agreements to further ease restrictions on yuan usage and the currency's circulation in Hong Kong.
Share This Article With Planet Earth
Related Links The Economy
Outside View: Stocks a sucker bet? College Park, Md. (UPI) Nov 30, 2010 With corporate profits breaking records, Wall Street anxiously anticipates the return of the individual investors to the stock market. It may be a long wait, because the little guy may have concluded investing in stocks is a sucker bet. Investors, as opposed to traders, buy stocks in companies whose profits they expect to rise. The conventional wisdom says stock prices will follow profi ... read more |
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |
del.icio.us
Digg
Reddit
YahooMyWeb
Google
Facebook
