November 30, 2017 / 7:47 AM / a year ago

UPDATE 1-China issues 7 bln yuan dim sum bonds in Hong Kong

* China finmin completes ninth annual issuance

* Prices 2-yr bonds at 3.9 pct, 5-yr at 4.10 pct, and 10-yr bonds at 4.15 pct

* Additional 0.5 billion yuan bonds sold to central banks (Adds details)

HONG KONG, Nov 30 (Reuters) - China’s Ministry of Finance has issued an aggregate 7 billion yuan ($1.06 billion) sovereign bonds in Hong Kong, the second batch of its ninth annual issuance, Hong Kong Monetary Authority said on Thursday.

This batch of yuan bonds includes 4 billion yuan 2-year bonds, 2 billion yuan of 5-year bonds and 0.5 billion yuan 10-year bonds. An additional batch of 0.5 billion yuan bonds was sold to central banks.

The 2-year tenor was priced at 3.9 percent, the 5-year bonds at 4.1 percent, and the 10-year bonds at 4.15 percent.

The finance ministry has annually issued dim sum bonds in Hong Kong since 2009 to boost development of the offshore market. It sold the first batch of this year’s offshore yuan bonds, worth 7 billion yuan, in June.

The offshore yuan market is facing headwinds as the volatile foreign exchange rate and China’s sluggish economy dampened foreign investors’ interest in using or holding the currency.

The yuan dropped one position in October to be the seventh most-used currency for international payments by value, global transaction service provider SWIFT said on Thursday.

$1 = 6.6064 Chinese yuan Reporting by Donny Kwok and Michelle Chen; Editing by Sherry Jacob-Phillips

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