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BEIJING, August 5 (TMTPOST) -- China"s Ministry of Finance announced that it will issue the second batch of treasury bonds in the Hong Kong Special Administrative Region next Wednesday, which totalled in 5 billion yuan（$741million).

This year"s cumulative issuance in Hong Kong reached 23 billion yuan（$3.4 billion), which is larger than previous years.

The RMB 5 billion（$741million） treasury bonds include 1 billion yuan（$148million） of 10-year bonds issued through the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA) by tender, with interest rates as the underlying for competitive bidding. The remaining 4 billion yuan will be added to bonds already issued, which mature in 2024, also issued through CMU bidding at an interest rate of 2.44% per year, and will be combined with the original 2024 bonds as a single series.

Hong Kong Financial Secretary Chen Maobo said that this fully demonstrates the Central Government"s full support for the development of Hong Kong as an international financial center and global offshore RMB business hub, and further promotes the development of Hong Kong"s bond market and attracts more international capital to converge on the Hong Kong market, enhancing Hong Kong"s development momentum.

This is the 14th consecutive year that the Ministry of Finance has issued yuan-denominated treasury bonds in Hong Kong. The Ministry of Finance announced earlier that in celebration of the 25th anniversary of the return of the Hong Kong Special Administrative Region, the cumulative issuance of 23 billion yuan（$3.4 billion） this year, in addition to the 7.5 billion yuan（$1.1 billion） issued in June and 5 billion yuan（$741million） to be tendered on August 10, the third and fourth batches of RMB treasury bonds for the year are 5.5 billion yuan and 5 billion yuan（$741million) respectively.

In an article published by the Chinese government website after the first RMB 7.5 billion ($1.1 billion) bond issue this year, Ying Jian, a strategic planner at the Bank of China Hong Kong Institute of Finance, was quoted as saying that the issuance of offshore RMB bonds is an important indicator of RMB internationalization and that each previous issue has been oversubscribed, indicating that the world is paying attention. Interest from other issuers has also increased. He said that the offshore RMB bond market will continue to improve and the scale of issuance will become larger and larger.