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FACTBOX-Hong Kong becomes China's offshore yuan base
September 7, 2010 / 9:56 AM / 7 years ago

FACTBOX-Hong Kong becomes China's offshore yuan base

 HONG KONG, Sept 7 (Reuters) - Hong Kong has become a platform for China to spread the use of its currency abroad, issuing increasing volumes of yuan-denominated bonds and offering ways to invest in the renminbi.
 Yuan deposits in Hong Kong have been rising after Beijing lifted some restrictions on the use of its currency to settle trade in Hong Kong in June 2009. Renminbi-denominated bond issues in Hong Kong have also steadily increased after a rule change by China in June 2007.
 The city’s yuan deposits rose 15.6 percent to 103.7 billion at the end of July from a month earlier, data from the Hong Kong Monetary Authority showed.
 Yuan deposits make up 1.6 percent of total deposits. Herewith the list of the latest yuan bond issues launched in Hong Kong: ----------------------------------------------------------------  - Date        Issuer        Amount     Coupon    Maturity Origin ----------------------------------------------------------------  - 2010   Bank of China      5.0 bln      2.65%      2-yrs  China Sept   Ltd (3988.HK)      yuan         2.9%       3-yrs
    601988.SAS ----------------------------------------------------------------  - 2010  Hopewell Highway   1.38 bln     2.98%      2-yrs     HK July   Infrastructure     yuan
    Ltd (0737.HK) ----------------------------------------------------------------  - 2009   HSBC (China)       2.0 bln      2.6%       2-yrs  Chinese Sept   (0005.HK)(HSBA.L)  yuan                           branch ----------------------------------------------------------------  - 2009   China Development  2.0 bln      2.0%       2-yrs  China Aug    Bank               1.0 bln  SHIBOR+30 BPs  2-yrs
                       yuan ----------------------------------------------------------------  - 2009   Bank of East Asia  4.0 bln      2.8%       2-yrs  Chinese July   Ltd (China)        yuan                           branch
    (0023.HK) ----------------------------------------------------------------  - 2009   HSBC (China)       1.0 bln  SHOBOR+38 BPs  2-yrs  Chinese June   (0005.HK)(HSBA.L)  yuan                           branch ----------------------------------------------------------------  - 2009   Ministry of        6.0 bln      2.25%      2-yrs  China Jan    Finance, China     yuan         2.7%       3-yrs
                                    3.3%       5-yrs ----------------------------------------------------------------  - 2008   Bank of China      3.0 bln      3.25%      2-yrs  China Sept   Ltd (3988.HK)      yuan         3.4%       3-yrs
    (601988.SS) ----------------------------------------------------------------  - 2008   China Construction 3.0 bln      3.24%      2-yrs  China Sept   Bank (0939.HK)     yuan
    (601939.SS) ----------------------------------------------------------------  - 2008   Export-Import      3.0 bln      3.4%       3-yrs  China Aug    Bank of China      yuan ----------------------------------------------------------------  - 2008   Bank of            3.0 bln      3.25%      2-yrs  China July   Communications     yuan
    Co Ltd (3328.HK)
    (601328.SS) ----------------------------------------------------------------  - 2007   Bank of China      3.0 bln      3.15%      2-yrs  China Sept   Ltd (3988.HK)      yuan         3.35%      3-yrs
    (601988.SS) ----------------------------------------------------------------  - 2007   Export-Import      2.0 bln      3.05%      2-yrs  China Aug    Bank of China      yuan         3.2%       3-yrs ----------------------------------------------------------------  - 2007   China Development  5.0 bln      3.0%       2-yr   China July   Bank [CHDB.UL]     yuan ----------------------------------------------------------------  - (Reporting by Alison Leung and Twinnie Siu; Editing by Chris Lewis)    

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