CBF first choice made by the people's Bank of China to go abroad in London issued 5 billion yuan bonds
people's Bank of China (PBoC) on October 21, said in a statement, for implementation of the outcome of the seventh China-UK economic and financial dialogue, on October 20, the people's Bank of China in London book-keeping documentation, successfully issued 5 billion yuan bills, term 1 year coupon 3.1%.
This is the people's Bank of China for the first time out of the country areas outside China, to issue Yuan-denominated bank notes.
Central Bank says this will enrich not only offshore RMB financial products with high credit rating, but also is conducive to deepening the offshore RMB market development, for the promotion of cross-border trade and investment facilitation is also positive.
since the CBF offshore rate higher than the market yield on one-year sovereign debt, therefore quite popular.
according to Bloomberg, United States and European investors accounted for 49% of the purchaser, the remaining 51% for Asian investors to buy. By investor type, the Bank accounted for 47%, Central Bank/public sector 38%, the Fund management company 14%, private bank 1%.
in September this year, seventh in Beijing China-UK economic and financial dialogue mentioned in the joint release, China's Central Bank to issue renminbi notes in London.
in the eyes of both, which increase the liquidity management of financial institutions in offshore markets, high credit quality investments and collateral plays an important role, to deepen the Renminbi market to consolidate London's position as a major global offshore RMB Centre, supporting the Yuan more widely used in Europe and worldwide.
known as CBF, is a tool for regulating market liquidity by the Central Bank of a country. Central ticket soak up liquidity issue, authorities inject liquidity into the ticket expires, then stepped in to be shorter, rolling release, China's Central Bank to issue RMB-denominated bills to London, can be considered the Central Bank directly regulating liquidity in the offshore market in London. In the interbank market, banks have not released then stepped in for two years.
fiery in recent years Sino-British economic and trade ties, in the race to make London the offshore centre for the Renminbi, is in the lead position. At present, including Germany Frankfurt, Luxembourg and other European financial centres offshore RMB Center showed great enthusiasm.
China's Central Bank in the United Kingdom issued offshore before then stepped in, United Kingdom has taken the lead in issuing sovereign bonds in Renminbi to become the world's largest renminbi bonds issued by non-Chinese.
by last September, held in London at the sixth China-UK economic and financial dialogue in Dongfeng, United Kingdom Treasury in October last year had successfully made his first to reach 3 billion yuan of renminbi sovereign bonds, for a period of three years, this is the first RMB sovereign bonds issued by Western countries.