China has granted 10 banks quotas to sell a large batch of offshore renminbi bonds, the first time it has publicly announced such a list of issuers.
That move, which helps boost the transparency of the fledgling renminbi market in Hong Kong, came alongside another milestone, with the first-ever approval for a Chinese company to borrow renminbi directly from an offshore bank. The pair of announcements yesterday underscored Beijing’s determination to press ahead with building the renminbi into an international currency even as its previously explosive growth abroad has begun to taper off.
But, coming from the National Development and Reform Commission, a powerful central planning agency, the announcements were also a reminder of the Chinese government’s indisputable role as the currency’s gatekeeper – and its preference for an ultra-cautious, controlled process of internationalisation.