Warwick Ventures has informed its investment team that China has started selling yuan-denominated sovereign bonds in Hong Kong for the first time on Monday. The purpose of the sale is to test international demand for its currency.
China has issued $879 in sovereign bonds. The Bank of China and the Bank of Communications, the two lenders managing the 6 billion yuan sale, said in news releases on Monday that the two-year bonds would have a yield of 2.25 percent, and the three-year bonds would yield 2.7 percent - higher rates than those offered to investors on the mainland.
China hopes that the issue of yuan will increase exposure and appeal to markets abroad.
