China considering expansion of HK yuan business

The Chinese government may allow Hong Kong companies to issue yuan-denominated bonds and settle trade transactions using the yuan, in order to expand yuan business in the city, Zhou Xiaochuan, governor of the People's Bank of China (PBoC) said, according to the China Securities Journal.

"Both the central government and the central bank support expansion of the yuan business in Hong Kong," Zhou said.

"We are studying the issue and expect to add more products to the list of yuan business in Hong