China's central bank to issue $8.3 bln of bills in Hong Kong

(ECNS) -- China's central bank said on Thursday it would issue 60-billion-yuan (about $8.3 billion) worth of bills in Hong Kong on Jan. 15. 

The six-month bills, with a maturity of 182 days, aim to improve the yield curve of yuan-denominated assets in the region, according to the central bank.

Market observers believe that the issuance of offshore RMB bills would help stabilize the associated rate, highlighting the People's Bank of China's determination to maintain currency stability.

Zhou Maohua, an analyst with China Everbright Bank, stated that by increasing the supply of high-grade RMB bonds offshore, the central bank is better positioned to meet foreign investor demand for high-quality assets.

The move will help regulate liquidity in the offshore market, which in turn influences supply and demand dynamics of the offshore foreign exchange market, he added.

At specific moments, the People's Bank of China uses offshore RMB bill issuance to communicate with the market and send policy signals. 

 Since November 2018, the bank has established a standard mechanism for issuing central bank bills in Hong Kong.