CDB expands RMB business

The China Development Bank (CDB) has announced that it would issue 5 billion yuan ($657 million) in renminbi bonds in Hong Kong to enhance economic cooperation between the Special Administrative Region (SAR) and the Chinese mainland.

"The issuance of RMB bonds here will strengthen Hong Kong's status as an international financial center," said University of Hong Kong professor Sung Man.

Expanding the use of RMB in Hong Kong would not only give local investors more currency options but also would gradually assist the development of the RMB as a capital instrument, Sung said.