China Allows Foreign Institutions to Sell Yuan Bonds
China’s central bank has announced that international and overseas development agencies are now allowed to issue yuan-denominated bonds in the country, as China seeks to expand its bond market. To be qualified to issue such bonds, an international institution must already have provided loans to Chinese companies or projects of more than US$1bn. This is in accordance with new regulations issued in February 2005 by the People’s Bank of China, the Ministry of Finance, the National Development and Reform Commission and the China Securities Regulatory Commission. This announcement comes at a time when China is seeking to develop new sources of funding beyond bank lending.