The renminbi eurobond issue by Hopewell Highway
Infrastructure (HHI) has attracted unprecedented market
interest. There are several reasons for this:
No PRC approvals were required for the raising of
Rmb-denominated funds from sources outside the PRC.
Bond issues (for banks, certificates of deposit) and bank
loans are currently available channels for foreign issuers
Renminbi proceeds may be used freely outside the Mainland or
for trade settlement purposes (ie, current account items) with
many Mainland businesses under the recently expanded pilot
Appropriate PRC approvals remain necessary if proceeds are
to be remitted into the Mainland as foreign investment (ie, on
These developments illustrate strong support from both PRC
and Hong Kong governments for the further internationalisation
of the renminbi, and for the development of Hong Kong as the
predominant offshore centre for the settlement of renminbi
transactions, pending convertibility of the renminbi.
The HHI renminbi eurobonds and...