PBOC to issue the largest-ever offshore yuan bonds in Hong Kong

China’s central bank will issue offshore Chinese yuan bills in Hong Kong this month, whose amount is estimated to be the largest-ever, to defend the falling exchange rate, mainland media reported.

The People’s Bank of China recently observed the “robust demand” of overseas investors for high-level yuan bonds and decided to provide more offshore bills, mainland media Yicai reported, citing sources close to the central bank.

The scale of the coming issuance is estimated to be “far higher” than the previous, the sources said.

The move indicates the determination of PBOC to stabilise yuan’s exchange rates, according to the report.

The Chinese yuan stands above 7.30 per US dollar after late December of 2024 and at 7.32 this morning, the highest after 2007.

The media Financial News under PBOC also published an article today that the central bank has released the "clear signal" of stabilizing the exchange rates of yuan.

The offshore yuan strengthened as much as 2 percent to 7.3454 per greenback in the morning, before retreating to below the 7.35-level again.

PBOC also set the reference rate of yuan against USD at 7.1876, the highest for about two weeks.

(Themis Qi)