Source: CCTV.com

06-28-2007 14:23

The first Chinese RMB bonds are now available in Hong Kong. They are being issued by the China Development Bank and the money raised will finance infrastructure projects in China. They're a hit with many Hong Kong residents.

It's Ms. Lee's lucky day that she has become Hong Kong's first resident to buy the RMB bonds in this bank. And she is quite satisfied to have found such a way to invest.

Hong Kong resident, Ms. Lee said "The coupon rate of the yuan bonds is much higher than the deposit rate of local banks. The RMB is also appreciating. Moreover, it's stable. So this is a very good investment choice for me as a retired person."

A good return indeed! The coupon is set at 3 percent - much higher than the typical 0.8 percent rate offered by local banks on yuan deposits.

China Development Bank's two-year yuan bonds have been capped at 5 billion yuan. The move is hailed by local authorities as a milestone for financial cooperation between Hong Kong and the Mainland.