More foreign firms can sell yuan bonds

时间：2007-08-11 02:31:11

（单词翻译:单击）

Aug. 10 - The government will allow more foreign institutions to sell yuan-denominated bonds in the country and buy foreign exchange with the proceeds to remit1 the money overseas, Deng Xianhong, deputy head of the State Administration of Foreign Exchange, said yesterday.

 

China permitted foreign institutions to issue yuan bonds in the country in 2005. Two international financial institutions, the Asian Development Bank and the International Finance Corp, have got the green light to do so but have been told it's mandatory2 to spend the money in China.

 

The new move will not only quench3 the capital thirst of some foreign institutions in China, but also help reduce the country's balance-of-payment surplus, and thus ease the pressure on the government to revaluate the yuan, analysts4 said.

 

Some foreign banking5 institutions need to extend yuan-denominated loans, but they are weak in absorbing yuan deposits, said professor of finance in Renmin University of China Zhao Xijun. "The new move will add to their source of yuan capital."

 

China slashed6 quotas7 for short-term overseas borrowings both by domestic and foreign financial institutions in March. Foreign banks and non-banking financial institutions can borrow from overseas up to only 60 percent of the 2006 level by the end of next March, increasing their thirst for the Chinese currency if they are do renminbi business.

 

The move will also help reduce China's capital account surplus, Zhao said. The surplus was $10 billion last year, which, coupled with the country's whopping current account surplus, constitutes the pressure on the government to revaluate the yuan and rein8 in liquidity9 in the market.

 

The measure is similar to China's qualified10 domestic institutional investor11 (QDII) scheme, he said, which was launched last April to allow domestic institutions to channel client funds overseas.

 

The scope of qualified institutions was expanded with the authorities recently allowing banks, brokers12, insurers and asset management companies to invest in overseas equities13 using client money.

 

Initially14, Zhao said, the yuan bonds issued by foreign institutions would be small. But in the long run, they could become sizable to have a substantial impact on the market. "The process should be gradual to avoid risks and shocks."

 

Some financial institutions with adequate capital and high ratings will be selected first and later other non-financial institutions will be allowed, he said.

 

During the Asian financial crisis a decade ago, some foreign institutions in Hong Kong had issued bonds to pool in the HK dollar before joining hands with international speculators to dump the currency to attack the financial market of the island.

 

"It is a lesson we should learn from," Zhao said.

 
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1 remit AVBx2     
v.汇款，汇寄；豁免（债务），免除（处罚等）
参考例句：
  • I hope you'll remit me the money in time.我希望你能及时把钱汇寄给我。
  • Many immigrants regularly remit money to their families.许多移民定期给他们的家人汇款。
2 mandatory BjTyz     
adj.命令的；强制的；义务的；n.受托者
参考例句：
  • It's mandatory to pay taxes.缴税是义务性的。
  • There is no mandatory paid annual leave in the U.S.美国没有强制带薪年假。
3 quench ii3yQ     
vt.熄灭，扑灭；压制
参考例句：
  • The firemen were unable to quench the fire.消防人员无法扑灭这场大火。
  • Having a bottle of soft drink is not enough to quench my thirst.喝一瓶汽水不够解渴。
4 analysts 167ff30c5034ca70abe2d60a6e760448     
分析家，化验员( analyst的名词复数 )
参考例句：
  • City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
  • I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。
5 banking aySz20     
n.银行业，银行学，金融业
参考例句：
  • John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
  • He possesses an extensive knowledge of banking.他具有广博的银行业务知识。
6 slashed 8ff3ba5a4258d9c9f9590cbbb804f2db     
v.挥砍( slash的过去式和过去分词 )；鞭打；割破；削减
参考例句：
  • Someone had slashed the tyres on my car. 有人把我的汽车轮胎割破了。
  • He slashed the bark off the tree with his knife. 他用刀把树皮从树上砍下。 来自《简明英汉词典》
7 quotas 56efa1d6a3d7b4abe55e080dda812715     
（正式限定的）定量( quota的名词复数 )； 定额； 指标； 摊派
参考例句：
  • In fulfilling the production quotas, John made rings round all his fellow workers. 约翰完成生产定额大大超过他的同事们。
  • Quotas of the means of production are allocated by the higher administrative bodies to the lower ones. 物资指标按隶属关系分配。
8 rein xVsxs     
n.疆绳，统治，支配；vt.以僵绳控制，统治
参考例句：
  • The horse answered to the slightest pull on the rein.只要缰绳轻轻一拉,马就作出反应。
  • He never drew rein for a moment till he reached the river.他一刻不停地一直跑到河边。
9 liquidity VRXzb     
n.流动性，偿债能力，流动资产
参考例句：
  • The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。
  • The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。
10 qualified DCPyj     
adj.合格的，有资格的，胜任的，有限制的
参考例句：
  • He is qualified as a complete man of letters.他有资格当真正的文学家。
  • We must note that we still lack qualified specialists.我们必须看到我们还缺乏有资质的专家。
11 investor aq4zNm     
n.投资者，投资人
参考例句：
  • My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
  • The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。
12 brokers 75d889d756f7fbea24ad402e01a65b20     
n.（股票、外币等）经纪人( broker的名词复数 )；中间人；代理商；（订合同的）中人v.做掮客（或中人等）( broker的第三人称单数 )；作为权力经纪人进行谈判；以中间人等身份安排…
参考例句：
  • The firm in question was Alsbery & Co., whiskey brokers. 那家公司叫阿尔斯伯里公司，经销威士忌。 来自英汉文学 - 嘉莉妹妹
  • From time to time a telephone would ring in the brokers' offices. 那两排经纪人房间里不时响着叮令的电话。 来自子夜部分
13 equities 501c457a1f918a4b41824052f5a3f5eb     
普通股，股票
参考例句：
  • These are invested mainly in the OECD bonds and equities. 这些资产主要投资于经济合作及发展组织的债券与股票市场。
  • They are also advantage of the global rebound in equities. 它们还在利用全球股市反弹的机会。
14 initially 273xZ     
adv.最初，开始
参考例句：
  • The ban was initially opposed by the US.这一禁令首先遭到美国的反对。
  • Feathers initially developed from insect scales.羽毛最初由昆虫的翅瓣演化而来。

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