Home>News Center>China
       
 

Foreign agencies to issue renminbi bonds
By Zhang Dingmin (China Daily)
Updated: 2005-03-02 08:41

China's authorities issued tentative rules yesterday to allow international development agencies to issue renminbi bonds in the domestic market.

The promulgation of the rules, which take immediate effect, is part of a major effort by the authorities to usher in international financial institutions to help develop local bond markets, marking a key loosening in the convertibility of the local currency.

According to the new regulation, jointly promulgated by the central People's Bank of China, the Ministry of Finance, the National Development and Reform Commission and the China Securities Regulatory Commission, international development institutions that have more than US$1 billion in loans and equity investment in China and an AA upward renminbi bond credit rating are qualified to issue renminbi bonds in China.

But they are required to use the proceeds within China.

The central bank said yesterday it will choose one or two issuers for pilot issuances before more institutions are permitted to follow suit.

But earlier reports said the authorities were considering bond issuances by the the International Finance Corp, the Asian Development Bank, and the Japan Bank for International Co-operation, totalling a combined 4 billion yuan (US$480 million).

The move brings in a new type of issuer in the domestic bond market and, "to some extent, helps promote the development of the bond market," said a central bank statement.

The Chinese currency is now partly convertible under the capital account, but no foreign institution has been allowed to issue bonds in China.

The future issuers will be required to set up a special renminbi account and are subject to foreign exchange supervision by the Chinese authorities.

Zhao Xijun, vice-director of Finance and Securities Institute at Renmin University of China, said allowing international issuers into the local currency bond market will help accelerate the internationalization of the renminbi and enhance its influence in regional trade.

The renminbi is already being widely used in neighbouring regions despite its partial convertibility, even serving as a settlement currency in regional trade.

The renminbi's role as a regional settlement currency benefits all parties concerned, but will require greater convertibility under the capital account, Zhao said.

"And allowing development agencies to issue renminbi bonds is a good way to accelerate progress," he said.

The move also spares the development agencies the trouble of currency conversion and exchange rate risks, and will help them better manage their projects in China, the scholar said.

But Zhao said the loosening does little to reduce the amount of forex inflows, since the development agencies have been cutting their lending to China as a result of its economic success.

Expectations of a renminbi revaluation have fuelled forex inflows into China in the past few years, complicating its monetary authorities' effort to curb local money supply while maintaining the currency's narrow floating range.



Fire kills 5 in Northeast China
Aerobatics show in Hunan
Final rehearsal
  Today's Top News     Top China News
 

Australia, US, Japan praise China for Asia engagement

 

   
 

Banker: China doing its best on flexible yuan

 

   
 

Hopes high for oil pipeline deal

 

   
 

Possibilities of bird flu outbreaks reduced

 

   
 

Milosevic buried after emotional farewell

 

   
 

China considers trade contracts in India

 

   
  EU likely to impose tax on imports of Chinese shoes
   
  Bankers confident about future growth
   
  Curtain to be raised on Year of Russia
   
  Coal output set to reach record high of 2.5b tons
   
  WTO: China should reconsider currency plan
   
  China: Military buildup 'transparent'
   
 
  Go to Another Section  
 
 
  Story Tools  
   
Manufacturers, Exporters, Wholesalers - Global trade starts here.
Advertisement
         
主站蜘蛛池模板: 国产一级毛片在线| 国产高清一级毛片在线人| 久久精品国产四虎| 欧美精品www| 免费一级欧美大片视频在线| 色多多网站入口| 国产在线精品观看一区| 俄罗斯精品bbw| 国产高清在线视频伊甸园| bbbbbbbw日本| 爱情岛在线视频免费观看网址| 国产欧美成人免费观看| 97国产免费全部免费观看| 小蝌蚪视频网站| 中文无码AV一区二区三区| 日韩三级电影院| 五月婷婷丁香六月| 欧美两性人xxxx高清免费| 亚洲熟妇少妇任你躁在线观看无码 | 日韩欧美国产中文字幕| 亚洲人成网国产最新在线| 欧美最猛性xxxxx69交| 亚洲精品亚洲人成在线| 熟妇人妻VA精品中文字幕| 免费无码黄网站在线观看| 精品国产精品国产| 又污又爽又黄的网站| 老司机在线精品| 国产一级一级一级国产片| 都市激情综合网| 国产又大又长又粗又硬的免费视频 | 国产99久久亚洲综合精品| 香港三级韩国三级人妇三| 国产成版人视频网站免费下| 青青操视频在线免费观看| 国产精品户外野外| 中文字幕视频在线观看| 日本特交大片免费观看| 久久精品国产亚洲av电影 | 国产亚洲欧美久久久久| 黑人26厘米大战亚洲女|