Bank of China Hong Kong plans to issue up to 22.2 billion yuan in interbank certificates of deposit

According to Bloomberg, the only Renminbi clearing bank in Hong Kong, Bank of China (Hong Kong) Limited, plans to issue interbank certificates of deposit in the mainland market, with the quota already registered with the People's Bank of China. A statement released by Bank of China Hong Kong on Tuesday indicated that the company plans to issue up to 22.2 billion Renminbi (approximately 3.3 billion US dollars) in interbank certificates of deposit this year.

Interbank certificates of deposit are short-term debt instruments with a maturity of one year or less, commonly used by domestic banks to raise funds from peers. Bloomberg stated that this move is another step by Chinese authorities to strengthen Hong Kong as a hub for Renminbi business.