The regulations on Chinese mainland banks' issuance of renminbi
bonds?in Hong Kong jointly issued by the central bank and the
top economic planner came into effect on Friday, a move to
consolidate the special administrative region's status as an
international financial center, said the central bank.
The regulations said policy and commercial banks are allowed to
issue renminbi bonds in Hong Kong and nailed down qualification
requirements on the issuers and issuance procedures.
Qualified domestic banks must have a core capital adequacy ratio
above 4 percent, keep earning profits for recent three years, have
sufficient loan loss reserve, meet risk control requirements and
have not conducted illegal behaviors in recent three years, said
the regulations.
Banks to issue renminbi bonds in Hong Kong must submit
applications to the central bank and send a copy to the National
Development and Reform Commission, the country's top economic
planner. The two recipients will examine the banks' qualifications
and report to the State Council.
A central bank official said the issuance would increase Hong
Kong residents' renminbi investment choices and expand renminbi
business in Hong Kong .
He said the renminbi business is developing healthily in Hong
Kong, and by the end of April 38 banks in Hong Kong had opened
renminbi business. The renminbi deposits in Hong Kong-based banks
have reached 25.5 billion yuan, he added.
So far three mainland banks have announced to consider issuing
renminbi bonds in Hong Kong. They are the Import and Export Bank of
China, Bank of China and China Construction Bank.
(Xinhua News Agency June 9, 2007)