China's finance ministry today issued a three billion yuan (£312m) international bond, its first ever outside China or Hong Kong.
The bond, set to be listed on the London Stock Exchange, was managed by HSBC and China's finance ministry.
In October last year, China's central bank debuted on London markets with the sale of its first ever "dim-sum" bond. The bond, which was placed a one-year issue in London with a yield of 3.10 per cent, was more than six times oversubscribed. Also, back in 2014, the Treasury sold three billion yuan of yuan-denominated bonds.
George Osborne, chancellor of the exchequer, said the deal promotes London as a "Western hub for the Chinese currency".
“I am delighted that the Chinese government has decided to issue this landmark RMB bond in London. Choosing London as the destination to issue the first sovereign RMB bond outside of China reinforces the UK’s strong economic and financial relationship with China,” he said.
“It also signals the success of London in building its position as the Western hub for RMB, reflecting the UK’s continued ability to innovate and lead in new financial markets."
In December last year the International Monetary Fund approved the RMB as a reserve currency.