China's issuance today is part of its efforts to step up its treasury bond sales in overseas market this year. Prior to the 8 billion worth issued today, the Bank of China and the China Import and Export Bank have each already issued 5 billion yuan in bonds in Hong Kong earlier this year.

The renminbi is on its way to becoming an international currency.

This July, an agreement on the expansion of the renminbi trade settlement scheme was signed by the People's Bank of China and Hong Kong Monetary Authority.

One month later, the central bank gave the green light to three types of overseas institutions, allowing them to use the renminbi when making investments on the inter-bank bond market.

It means that overseas central banks, as well as settlement banks in Hong Kong and Macao, and participating cross-border Renminbi settlement banks are allowed into that market.

Zhong Wei, Finance Research Center Director of Beijing Normal University said "With the renminbi cross-border settlement, the internationalization of RMB is speeding up. And with more multi-lateral agreements being reached, the currency will play a more important role in the international community."

At the moment, RMB invested in the current domestic bond market comes from three places. One, currency swapped back from central banks of other countries; Two, from cross-border Renminbi settlement, and three, from renminbi accounts established in places like Hong Kong.

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