Chinese banks told to issue more offshore US dollar bonds

Hong Kong

CHINA'S central bank is said to have encouraged banks to issue more offshore US dollar bonds at a time of steep declines in the country's foreign reserves, raising supply prospects for the sector.

The People's Bank of China (PBOC) encouraged banks at a meeting late last month to issue more US dollar bonds, according to two market sources. The guidance was verbal and no specific measures were mentioned, they added.