China to sell $3.46 billion worth of treasury bills to Hong Kong

What’s new: China’s finance ministry on Monday unveiled a plan to sell 23 billion yuan ($3.46 billion) of yuan-denominated treasury bills in Hong Kong this year.

The bonds will be issued in four batches, with the first issuance of 7.5 billion yuan of notes scheduled for June 15, the finance ministry said. The maturity periods of the bonds will range from two to five years.

The Hong Kong Monetary Authority will announce a detailed issuance and subscription plan later, the ministry said.

Why is this important: The planned issuance will mark the 14th consecutive year for the Ministry of Finance to sell treasury bills in Hong Kong as Beijing seeks to bolster the Asian financial hub’s status as an offshore center for the yuan.

This year’s bond sale will be the largest in years, exceeding 20 billion yuan in 2021 and 15 billion yuan in 2020. At the end of 2021, the central government sold a total of 238 billion yuan of treasury bonds in Hong Kong.

In addition to Treasuries, Beijing also boosted sales of local government bonds in Hong Kong. In October 2021, the Shenzhen city government sold 5 billion yuan of banknotes in three batches in Hong Kong, the first offshore bond issue by a local authority.

Quick Takes are condensed versions of China-related stories for quick news that you can use.

Contact reporter Han Wei ([email protected]) and editor Bob Simonon ([email protected])

To download our app to receive news alerts and read news on the go.

Obtain our free weekly Must-Read newsletter.

Garland K. Long