China banks to issue $2.9 bln HK yuan bonds -sources

BEIJING, June 20 (Reuters) - Five Chinese banks will soon issue up to 20 billion yuan ($2.91 billion) of bonds in Hong Kong in a major expansion of a state-led experiment to tap world debt markets and internationalise the use of the yuan, a regulatory and banking sources said on Friday.

This would comprise the latest batch of yuan-denominated bonds offered in Hong Kong after Beijing let three mainland banks sell a total of 10 billion yuan of such debt in 2007.

China Development Bank and Export-Import Bank are expected to issue 6 billion yuan and 5 billion yuan of bonds, respectively, said the sources, who were not authorised to speak to the media about the issue.

Bank of China (3988.HK) (601988.SS), China Construction Bank (601939.SS) (0939.HK) and Bank of Communications (3328.HK) (601328.SS) would sell a total of 9 billion yuan, they said.

"The proposals for the five issuances have been submitted to the State Council and are quite likely to get approval within two weeks," the regulatory source said. ($1=6.8802 yuan) (Reporting by Eadie Chen; Editing by Anne Marie Roantree) (eadie.chen@reuters.com; +8610 6627 1268; Reuters Messaging: eadie.chen.reuters.com@reuters.net))