China issues yuan bonds in Paris for first time

15th September 2014, Comments 0 comments

China took a new step towards international use of its currency, the yuan, on Monday when it successfully launched yuan-based bonds in Paris for the first time.

The bonds, intended to raise 2.0 billion yuan (240 million euros, $310 million) were issued by the state-owned Bank of China.

The issue attracted a strong level of interest, and demand amounted to 3.65 times the amount offered, the president of the central bank Tian Guoli said at a ceremony at the premises of the Paris Euronext market.

"Investor demand has been very strong and this shows that the process of the internationalisation of the yuan is maturing," he said.

In June, China and France signed an agreement for yuan clearing arrangements, one of a number of such accords Beijing has sought with foreign countries to help boost use of its currency overseas.

Yuan clearing allows companies and financial institutions to use the currency for cross-border transactions, and promotes liberalisation of trade and investment.

Britain said last week that it would be the first country outside China to issue yuan-denominated bonds, as London seeks to become a Western hub for trading in the Chinese currency.

© 2014 AFP

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