The banks look forward to issue the debt securities in Hong Kong to finance their local Chinese incorporated banking network.
As reported by the Wall Street Journal, each bank has shown a desire to raise yuan to support the expansion of Chinese operations, including shares that would list on the Shanghai Stock Exchange.
The recent move would not only boost investor confidence, but is also aimed at enhancing the currency’s international role. Yuan bond sales by HSBC and BEA will provide a benchmark for other foreign banks looking for funds in the Chinese currency.
Richard Yorke, President and Chief Executive of HSBC Bank (China), said: “We believe that (a yuan) issue by HSBC China will help establish a representative pricing benchmark for foreign banks requiring funding, and will help the development of Hong Kong’s offshore (yuan) market.”
Chinese banks, including Bank of China and China Development Bank, have already issued yuan bonds in Hong Kong.
