Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

TRENDING
In Depth: How Baoshang Takeover Shook Secretive Corner of Bond Market
Mengniu Dairy Announces Olympics Deal Amid Spat With Rival Yili
New Funding Values Chinese Artificial-Heart Maker at 1 Billion Yuan
LATEST
Embattled ZTE Says It Has Inked 25 5G Commercial Contracts
Japanese Investors Can Now Buy Chinese Stocks
China Mobile Unveils Detailed Plans for ‘World’s Largest 5G Network’
Huawei Mate 20 X Phone Gets Ahead in 5G License Race
Money-Losing Video Platform iQiyi Hits Record 100 Million Subscribers
FedEx Sues U.S. Commerce Department Over Huawei Parcel Incident as China Demands Answers
Chairman of Troubled LeEco Affiliate Steps Down
Shenzhen Sets Record for Daily Land Sales as Housing Market Booms
Former Principal Arrested After Teacher's Remains Found Under School Grounds
China Goes Bananas for Bananas
State-Owned Dongfeng Motor Joins New-Energy Fund as Subsidy Cuts Loom
Coat Maker Bosideng Falls Most on Record After Short Seller Report
Baidu Offers More News Search Options After Journalist Accuses It of Bias
Mengniu Dairy Announces Olympics Deal Amid Spat With Rival Yili
China Literature Eyes Southeast Asia Expansion
New Funding Values Chinese Artificial-Heart Maker at 1 Billion Yuan
In Depth: How Baoshang Takeover Shook Secretive Corner of Bond Market
China Railway Signal Gets Green Light to List on Nasdaq-Style Tech Board
Huawei Rolls Out New Kirin Chip for Mid-Range Phones
Man Behind $10 Billion Internet Finance Fraud Case Gets 15 Years
Central Bank to Issue Bills in Hong Kong

By Zhao Runhua and Lin Jinbing / Jun 11, 2019 11:29 AM / Finance

Photo: VCG

Photo: VCG

China’s central bank said Tuesday it will issue bills in Hong Kong, though it did not release details of the amount it will sell.

By absorbing yuan funds in the offshore market, the issuance of central bank bills can reduce the amount of yuan commercial banks have available to lend. The move could help push up the cost of yuan shorting.

As the domestic economy cools and trade tensions persist, financial markets are wondering whether the onshore yuan’s reference rate will weaken past 7 per U.S. dollar – a figure widely interpreted as a breaching point for further devaluation. The onshore yuan depreciated beyond 6.9 per dollar in mid-May due to intensified trade tensions, and is now fluctuating around 6.9.

In November, the central bank sold 20 billion yuan ($2.9 billion) worth of bills in Hong Kong — its first debt issuance in the city.

Related: Exclusive: The Number Seven Doesn’t Mean Much for Yuan, Ex-Central Bank Chief Says

Contact reporter Zhao Runhua (runhuazhao@caixin.com)

Share this article
Open WeChat and scan the QR code
Copyright © 2019 Caixin Global Limited. All Rights Reserved.