China Ministry Sells 14 Billion Yuan of Bonds in Hong Kong
- Yuan drop likely to be covered by extra yield, Stanchart says
- China sells 2019 bonds at lower yield than at previous auction
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China’s sale of sovereign debt in Hong Kong drew strong interest as demand for the city’s higher yields and limited supply overshadowed yuan depreciation concerns.
The Ministry of Finance sold 14 billion yuan ($2.1 billion) of yuan-denominated notes in Hong Kong on Wednesday, according to the Hong Kong Monetary Authority. A total of 7 billion yuan of three-year notes was issued at 2.9 percent, compared with the secondary market yield of 2.56 percent in Shanghai and an average rate of 3.1 percent at the previous auction in November.