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-HSBC says yaun FDI could boost bond issuance.

Global Banking News-June 30, 2011--HSBC says yaun FDI could boost bond issuance(C)2011 ENPublishing - http://www.enpublishing.co.uk

Global Banking News - 30 June 2011

Ben Chan, senior vice president of business planning and strategy at the Hong Kong unit of HSBC Holdings Plc (LSE: HSBA), has opined that FDI issuance in Chinese yuan could boost bond issuance outside mainland China.

Chan, said, 'As for renminbi bonds, there is still a question as to how to bring bond proceeds back to mainland China. Now it's going through on a case-by-case approval, which is less certain. But if we have an FDI program, it will effectively facilitate the issuance of renminbi bonds in Hong Kong and overseas. If I have more well written policies, I will know what investments in which companies and which projects will be allowed, then more bonds can be expected. In Hong Kong, we face a problem that the return on renminbi deposits is quite low because there is no effective way to deploy renminbi in the real economy. So there's huge demand for foreign direct investment in yuan.'

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Publication:Global Banking News (GBN)
Geographic Code:9CHIN
Date:Jun 30, 2011
Words:204
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