any etf or instrument to access yuan denominated bonds?

Discussion in 'Stocks' started by dumb_mother, Jun 29, 2009.

  1. does anyone know of any way of accessing bonds denominated in the yuan? i want out of the US dollar and figure with these talks of bigger currency there is a decent chance of it being the yuan.
  2. Honkong is preparing to isuue some yuan denominated bonds, but relatively small volume.

    HONG KONG -- HSBC Holdings PLC became the first foreign bank to sell yuan-denominated bonds to international investors, edging out Bank of East Asia Ltd. by a few days.

    China and Hong Kong have been making an effort to develop the territory's bond market, particularly in the secondary market, where activity is slow because investors prefer to hold bonds for the long term.

    While major Chinese banks have already issued yuan bonds in Hong Kong, HSBC's issuance is the first by a China-incorporated unit of a non-Chinese bank in the territory. Bank of East Asia is expected to follow on Tuesday. Both banks received permission to issue the bonds in mid-May.

    HSBC's 1 billion-yuan ($146.4 million) bond, aimed at institutional investors, was sold Thursday at 0.38 percentage point above the three-month Shanghai interbank offered rate, a person familiar with the deal said Thursday. That was toward the top end of the indicative range of 0.30 percentage point to 0.40 percentage point above Shibor, which now stands at 1.2925%.