China will issue a new high in the issuance of RMB pricing sovereign bonds overseas this year. This will help Beijing to support weak RMB. In the long run, it can also increase the global popularity of the RMB.
According to Bloomberg, the Ministry of Finance of China issued a statement on Wednesday (October 11) that the Ministry of Finance will issue a total of 26 billion yuan in two stages in the fourth quarter of the Ministry of Finance (the same, S $ 4.853 billion) in Hong Kong.State debt.
According to Bloomberg, this will make the total annual issuance of 55 billion yuan in annual issuance, which is the highest level since China was first issued by China for offshore RMB sovereign bonds in 2009.
It is reported that the increase in such bonds will help Beijing to support the RMB exchange rate by improving the demand for RMB and tightening the offshore supply. At present, the offshore RMB is close to the historical low.
Since the Chinese Ministry of Finance is the second largest publisher of the Central Bank of China after the offshore RMB bond market, the stable supply of such bills will also help establish a long -term pricing benchmark for enterprise borrowers.
Zhao Zhixuan, the chief Asian foreign exchange and interest rate strategist of Bloomberg industry, said that supporting offshore RMB may be the primary goal of the increase in issuance.Compared to financial support, the amount is very small.The offshore government debt pool is still too small. For the long -term purpose of the RMB internationalization, China will have the motivation to increase the debt pool.
