More RMB bills on way for HK

The People’s Bank of China has announced it will issue RMB bills in Hong Kong in “late June”. This is being done ostensibly to “improve the yield curve” of the bonds traded in Hong Kong, yet it would appear that the announcement is timed to send a warning to speculators in the offshore market by soaking up liquidity and burning short-sellers betting on a decline amid the US-China trade war.

Since November last year, the PBOC has successfully issued RMB bills three times in Hong Kong through the Central Moneymarkets Unit (CMU) platform of the Hong Kong Monetary Authority. The latest issuance was on May 15th, including three-month bills and one-year bills of RMB10 billion each.Read more in Chinese.