Bloomberg News

Bank of East Asia’s China Unit Wins Approval for Dim Sum Bonds

February 20, 2012

Feb. 17 (Bloomberg) -- Bank of East Asia Ltd., the third- largest Hong Kong-based lender, said its China unit won regulatory approval to sell 1 billion yuan ($159 million) of Dim Sum bonds in the city.

China’s National Development and Reform Commission recently granted approval for the bond sale, Brian Li, deputy chief executive of Bank of East Asia, said in an e-mailed reply to questions today. The bank plans to complete the sale this year, he said.

Yuan bond sales in Hong Kong increased more than fourfold to 151.4 billion yuan last year, from 35.7 billion yuan in 2010, according to data compiled by Bloomberg. HSBC Holdings Plc, the top underwriter for the notes, forecasts total Hong Kong sales of as much as 310 billion yuan this year.

China’s Vice Premier Li Keqiang pledged in August to allow mainland Chinese companies to borrow as much as 50 billion yuan each year through bond sales in the city. The government has also relaxed rules to allow direct investments denominated in the currency.

--Editors: James Gunsalus, Chitra Somayaji

-0- Feb/17/2012 03:55 GMT

-0- Feb/17/2012 04:36 GMT

To contact the reporter on this story: Stephanie Tong in Hong Kong at stong17@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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