(Reuters)
Updated: 2007-06-05 10:28

The board of China Export-Import Bank (Exim Bank) has approved a proposal for the bank to issue yuan-denominated bonds in Hong Kong, the Financial News said on Tuesday.

The paper said Exim Bank had already prepared for the issue and could begin concrete steps as soon as it gained approval from the People's Bank of China.

The report did not say when the bank might issue yuan bonds or how large an issue it would be.

Beijing said in January that it would allow Chinese financial institutions to sell yuan bonds in Hong Kong, a move aimed at helping to give domestic entities more international exposure.

Banking sources told Reuters in April that five Chinese banks were each planning to issue about 2 billion yuan ($260 million) of bonds in Hong Kong and that the first issue might be early in the summer.

The banks are Exim Bank, China Development Bank, Industrial and Commercial Bank of China Ltd. , Bank of China and Construction Bank of China , the sources said. ($1=7.65 yuan)