China Minsheng Banking Plans RMB Bond Sales in Hong Kong

China Minsheng Banking Corporation Ltd. (SHSE: 600016 and SEHK: 1988), one of the commercial lenders in the country, announced last weekend that it would sell renminbi-denominated bonds in Hong Kong to strengthen its competitiveness out of mainland China.

The to-be-issued bonds, with a term of less than 10 years, will make up not more than 1% of the total assets of Minsheng Banking. The commercial lender, based in Beijing, is entitled to offer bonds worth CNY 20.427 billion this time calculated by its total asses at the end of March 2011.

The bond offering, according to Minsheng Banking, will enable the company to enlarge its financing channel, enrich its financing coverage, cut financing costs, and beef up competitiveness in the global market.

A group of commercial lenders from the mainland are looking to float bonds in Hong Kong in the wake of the renminbi bond market boom. Players that have unveiled plan to sell renminbi bonds in Hong Kong include big names like China Merchants Bank Co., Ltd. (SHSE: 600036 and SEHK: 3968), Bank of China Limited (SHSE: 601988 and SEHK: 3988), and Bank of Communications Co., Ltd. (SHSE: 601328 and HKSE: 3328).