HSBC Holdings Plc (HSBA), Europe’s biggest
bank by market value, is planning to sell three-year yuan-
denominated bonds listed in London, according to a person
familiar with the matter.
The sale will be the first time a European bank has issued
so-called Dim Sum bonds listed in the city, according to data
compiled by Bloomberg.
There are currently more than 109 billion yuan ($17.3
billion) of customer and interbank deposits in the Chinese
currency in London, according to a policy paper prepared by
research firm Bourse Consult and released yesterday. China,
which is expanding the use of its currency overseas, designated
Hong Kong as an offshore center for yuan trading after allowing
trade settlements using the currency in 2009.
Vinh Tran, a spokeswoman for HSBC in Hong Kong, declined to
comment on the sale when contacted by telephone today.
“European investors have become increasingly active in the
Dim Sum market,” Steve Wang, the head of fixed-income research
in Hong Kong at BOCI Securities, a unit of Bank of China Ltd.,
said. “The listing gives some symbolic sign London has the
capacity and the desire to serve the renminbi business,” he
said, referring to the Chinese currency by its alternative name.
The Hong Kong Monetary Authority announced in January that
it plans to lengthen trading of the yuan by five hours by June,
allowing London-based institutions the opportunity to expand
their share of trading in the currency outside China.
HSBC is marketing the yuan bonds to yield about 3 percent
to 3.25 percent, the person said today, asking not to be
identified because the details are private.
The bank is the top underwriter of Dim Sum bonds in Hong
Kong this year, according to data compiled by Bloomberg
To contact Bloomberg News staff for this story:
Henry Sanderson in Beijing at
hsanderson@bloomberg.net
To contact the editor responsible for this story:
Shelley Smith at
ssmith118@bloomberg.net
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