Southeast Asia Information Port News (www.dnyxxg.com) – According to a statement released by the People's Bank of China (PBOC) on February 13th, to enrich high-credit-rating RMB financial products in Hong Kong and improve the RMB yield curve in Hong Kong, the PBOC will issue the first and second tranches of central bank bills (hereinafter referred to as "central bank bills") for 2026 through the Hong Kong Monetary Authority's Central Moneymarkets Unit (CMU) bond bidding platform on February 25th, 2026 (Wednesday).
The first tranche of central bank bills has a maturity of 3 months (91 days) and an issuance volume of RMB 30 billion. The second tranche has a maturity of 1 year and an issuance volume of RMB 20 billion. Both tranches of central bank bills have a face value of RMB 100 and will be issued using a Dutch auction method, with the interest rate as the bidding target.
Dong Ximiao, chief researcher at Zhaolian, stated that issuing central bank bills is equivalent to withdrawing RMB liquidity from the offshore market, which will directly increase the cost for speculators to borrow RMB to short the exchange rate. At the same time, central bank bills provide offshore RMB funds with investment channels other than loans and stocks, enhancing the willingness of offshore entities to hold RMB. This issuance of central bank bills will help break the expectation of a potential one-sided depreciation of the RMB exchange rate and clearly send a signal to the market that the People's Bank of China has the capability and tools to maintain exchange rate stability. (End)
