China's central bank issues 10b yuan of bills in Hong Kong

China's central bank on June 23 issued 10 billion yuan (about $1.42 billion) of six-month renminbi central bank bills in Hong Kong with an interest rate of 2.21 percent.

The issuance was well-received by overseas institutional investors such as banks, central banks and funds from the United States, Europe, Asia and other countries and regions, as well as a number of international financial organizations, with the total bid amount exceeding 34 billion yuan, 3.4 times the amount in circulation, according to the People's Bank of China (PBOC).

This reflects the strong attractiveness of renminbi assets for overseas investors, as well as the confidence of global investors in the Chinese economy, the PBOC said.

The bills are the sixth batch issued by the central bank this year. As the issuance has been carried out on a rolling basis, the balance of renminbi central bank bills in Hong Kong is still 80 billion yuan, the central bank said.

Since November 2018, the PBOC has gradually established a mechanism for the regular issuance of renminbi central bank bills in Hong Kong.

The stable and continuous issuance of renminbi central bank bills in Hong Kong is conducive to enriching the portfolio of renminbi investment products with a high credit rating, as well as the renminbi liquidity management tools in the Hong Kong market, it said.

It can also help meet the needs of investors from offshore markets, improve the offshore renminbi yield curve, boost the development of the offshore renminbi money market, and encourage other issuers to issue renminbi bonds in offshore markets to promote the internationalization of the renminbi, the central bank said.