Pbc Statement: Yuan and Bills

pbc statement: The People's Bank of China PBC the country's central bank, announced the issuance of 20 billion yuan of three-month bills priced at 2.9 percent and 10 billion yuan of one-year bills sold at 2.95 percent, according to its statement, according to Global Times China. The auction was welcomed by the market, generating subscriptions of more than 78 billion yuan, or a 2.6 times oversubscription, the PBC statement said. The move that offshore investors were chasing yuan-denominated debt despite the lingering chaos in the city attests to market optimism about the Chinese currency, analysts said, noting that the move also illustrates the central government's continued confidence in Hong Kong's role as a global financial hub. Among those bidding for the bills were a variety of offshore investors including commercial banks, funds, central banks and international financial organizations. The increasing popularity of yuan-denominated debt among international institutions will also help stabilize the currency's exchange rate, Tan said. I believe that the PBC holds its yuan bill auctions in Hong Kong because it is an internationally recognized financial hub, which can attract more offshore investors from international backgrounds, Tan Yaling, head of the China Forex Investment Research Institute, told the Global Times on Wednesday. (news.financializer.com). As reported in the news.