China to continue floating treasury bonds in HK: minister

Journalists continue to ask questions from Chinese finance minister Lou Jiwei after a press conference for the third session of China's 12th National People's Congress (NPC) on fiscal and tax reform, in Beijing,capital of China, March 6, 2015. (Xinhua/Yin Gang)

China will continue to issue yuan-denominated treasury bonds in Hong Kong Special Administrative Region (HKSAR), China's Finance Minister Lou Jiwei said Friday.[Special coverage]

Lou made the remarks at a press conference on the sidelines of the annual session of the National People's Congress, China's top legislature.

Hong Kong has been given the unique position in floating yuan-denominated treasury bonds, because the majority of offshore renminbi is traded in Hong Kong and it is China's territory, he stressed.

From the perspective of the central government's fiscal condition, China does not have a "pressing need" to issue yuan-denominated treasury bonds overseas, but floating treasury bonds overseas can provide a benchmark rate for other bonds-issuing agencies, Lou said.

The Ministry of Finance (MOF) has floated a combined amount of more than 100 billion yuan (16.3 billion U.S. dollars) of treasury bonds in Hong Kong, Lou noted.

The MOF started selling yuan-denominated treasury bonds in Hong Kong in September 2009 to support Hong Kong's economy and speed up the expansion of offshore yuan business.

Proactive fiscal policy a must amid downward pressure

Proactive fiscal policy a must amid downward pressure