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: 一二三四区产品乱码芒果免费版| 俺去啦在线视频| 337p日本欧洲亚洲大胆色噜噜 | 亚洲成年人网址| 男生把女生桶爽| 国产97在线观看| 麻豆一二三四区乱码| 国产精品久久久久久福利| 97久久精品一区二区三区| 女人被男人桶爽| 七次郎成人免费线路视频| 日本护士xxx| 九九久久精品国产免费看小说| 欧美成人精品第一区二区三区| 人人妻人人做人人爽| 精品一久久香蕉国产线看观看下| 国产91小视频| 野花日本免费观看高清电影8| 国产成人精品一区二区三区免费 | 国产丝袜视频一区二区三区| 国产精品午夜剧场| 国产精品亚洲色婷婷99久久精品| 97精品免费视频| 大香焦伊人久久| japanesehd日本护士色| 婷婷国产成人精品视频| 中国欧美日韩一区二区三区| 日日干日日操日日射| 久久亚洲国产成人精品无码区| 日韩视频免费看| 亚洲AV无码潮喷在线观看| 黑人巨大videos极度另类| 永久免费看mv网站入口| 免费黄色网址在线播放| 美女教师一级毛片| 国产一区中文字幕| 被强到爽的邻居人妻完整版| 大尺度无遮挡h彩漫| 国产精品国产三级在线专区| 国产一区二区三区不卡在线观看 | 亚洲欧美日韩久久精品第一区 |