CCB chairman calls for RMB bond issuance

Guo Shuqing, chairman of China Construction Bank (CCB), called for the World Bank and the US to issue yuan-denominated bonds in Hong Kong and Shanghai, Reuters reported. Guo said the move would encourage the growth of debt markets in Hong Kong and Shanghai, and help develop the renminbi as a major international currency. Guo said that more developed Chinese debt markets could aid US companies needing capital for planned investments in China, as well as enable organizations like the World Bank to honor commitments in China. Guo’s statements follow US Treasury Secretary Timothy Geithner’s visit to China last week, in which he called for more economic cooperation between Washington and Beijing. HSBC and Standard Chartered announced last Wednesday that they were planning to issue yuan-denominated bonds in China.