China Development Bank announced on Monday that it had received approval from the central bank and would become the first mainland bank to offer RMB bonds in Hong Kong.

 

The bank did not reveal the amount of bonds to be issued or the date of issue.

 

The Import and Export Bank of China, Bank of China and China Construction Bank have also said earlier that they are mulling over similar plans in Hong Kong.

 

The announcement came after regulations issued Friday allowed commercial banks to issue renminbi bonds in Hong Kong. All financial institutions wishing to do so may submit applications to the central bank, which will be subject to review by the National Development and Reform Commission.

 

A central bank official announced that renminbi bonds would increase Hong Kong residents' renminbi investment choices and broaden RMB business in the SAR.

 

By the end of April, 38 Hong Kong banks had already opened renminbi businesses with total deposits reaching 25.5 billion yuan.

 

(Xinhua News Agency June 12, 2007)