More RMB-denominated bonds to be issued in HK

China’s Ministry of Finance announced that a further US$1.2 billion of renminbi-denominated government bonds would be sold in Hong Kong, the Wall Street Journal reported. The ministry said that US$753 million of the bonds would have maturities of three, five or 10 years, while the remaining US$447 million would have a two-year maturity. The issuance of more offshore renminbi-denominated bonds is widely seen as a sign that Beijing plans to continue its gradual steps towards internationalizing the currency. The government also announced that the renminbi would now be allowed to trade against the Russian ruble, a move which comes as Chinese Premier Wen Jiabo visits Russia this week. China’s currency is currently tradable against just six other currencies – the euro, Hong Kong dollar, Malaysian ringgit, pound, the US dollar and the yen.