First non-mainland RMB bond issue meets strong demand

Beijing’s first issue of renminbi-denominated bonds outside mainland China attracted strong demand from investors, the Wall Street Journal reported. The RMB6 billion (US$879 million) offering attracted RMB18 billion worth of subscriptions, a higher subscription rate than is usually seen for government bond issues on the mainland. Expectations that the renminbi will appreciate attracted investors to the bonds, which were issued in tranches with maturities of two, three and five years. Vice Finance Minister Li Yong said last month Beijing would consider investor response in deciding whether to issue more renminbi-denominated bonds; the outlook for more issues was "very good," he said.