Photo shows a view by the Victoria Harbor in Hong Kong, South China, on June 11, 2020. (LI GANG / XINHUA)
BEIJING – China's central bank issued 25 billion yuan (about $3.5 billion) worth of central bank bills in the Hong Kong Special Administrative Region on Monday.
Of the total, 10 billion yuan worth of central bank bills will mature in three months, and the other 15 billion yuan will mature in one year, with respective interest rates of 2.09 percent and 2.5 percent, according to the People's Bank of China.
The issuance was well-received by overseas investors, with total bidding reaching about 55 billion yuan, roughly 2.2 times the value issued, said the People's Bank of China
The issuance was well-received by overseas investors, with total bidding reaching about 55 billion yuan, roughly 2.2 times the value issued, the central bank said.
The bidding reflects the strong attractiveness of renminbi assets to overseas investors and the confidence global investors have in the Chinese economy, according to the central bank.
Since November 2018, the central bank has gradually established a mechanism for the regular issuance of renminbi central bank bills in Hong Kong.
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The regular issuance of renminbi central bank bills in Hong Kong not only enriches renminbi investment products and liquidity management tools in the Hong Kong market, but also encourages domestic financial institutions, enterprises and other entities to issue renminbi bonds in the offshore market.