China to Issue RMB Sovereign Bonds and PBOC Bills in Hong Kong, Totaling RMB 45 Billion
The Ministry of Finance (MoF) and the People’s Bank of China (PBOC) will both conduct Renminbi (RMB) issuances in Hong Kong through the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA), underscoring the city’s role as the leading offshore RMB market.
According to the HKMA, the MoF will issue RMB-denominated sovereign bonds via the CMU. In parallel, the PBOC announced that it will tender RMB 45 billion in central bank bills on August 25 through the CMU bond tender platform.
The issuance includes the fifth tranche of central bank bills worth RMB 30 billion with a three-month maturity (91 days), and the sixth tranche worth RMB 15 billion with a one-year maturity. Both are fixed-rate coupon bonds, with interest payments at maturity for the shorter tenor and semiannual payments for the one-year notes. The bonds will be priced through Dutch auction, with the coupon determined by market bidding.
Analysts note that the move will enrich the pool of high-credit RMB assets in Hong Kong and further improve the offshore RMB yield curve. Together, the MoF’s sovereign bond program and the PBOC’s regular bill issuance highlight Beijing’s continued commitment to deepening offshore RMB liquidity and strengthening Hong Kong’s position in the global bond market.
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