Province in Canada issues yuan bonds

THE Canadian province of British Columbia (BC) has become the first foreign government to issue a yuan-denominated offshore bond, in a move that investment bankers say could be the forerunner of many more by Asian and other public and private entities.

The launch came shortly before the Third Plenary of the Chinese Communist Party scheduled to be held from this weekend in Beijing, where further steps aimed at liberalising China's capital markets are expected to be unveiled.

"I expect many more non-Chinese governments, official institutions and foreign companies to be issuing yuan paper," former Goldman Sachs (Asia) vice-president Kenneth Courtis told The Business Times. Canada's Alberta province is expected to follow BC with an issue.