China’s central bank and the country’s top economic planner announced on Tuesday the abolishment of the Interim Measures for the Administration of the Issuance of Yuan Bonds in Hong Kong Special Administrative Region (HKSAR) by Domestic Financial Institutions, published in 2007, in a bid to improve the system for domestic financial institutions to issue bonds overseas.
The People’s Bank of China (PBC), the National Development and Reform Commission (NDRC) and other relevant departments shall be responsible for the issuing of yuan bonds by domestic financial institutions within the current regulatory framework and their respective responsibilities, the PBC said in a statement released on Tuesday.
By the first half of 2021, domestic financial institutions had issued 147.8 billion yuan ($23.21 billion) of yuan bonds in HKSAR since the promulgation of the Interim Measures in 2007, playing an important role in enriching investment products in the overseas yuan market and broadening channels for the use of overseas yuan funds.
The Interim Measures can no longer fully meet the current needs with the acceleration of the high-level opening-up in China, the foreign debt management constantly improved and the prudent macroeconomic management framework for cross-border financing gradually improved.
The abolishment of the measures is also among the efforts of deepening reforms to streamline administration and delegate power, improve regulation and upgrade services.
After the abolition of the Interim Measures, domestic financial institutions will not be affected when they issue yuan bonds and foreign currency bonds in other countries and regions outside the HKSAR and the procedures will be streamlined and optimized, the PBC announced.
Renminbi Photo: VCG
