(Yicai Global) Dec. 1 -- China's Ministry of Finance issued USD1.06 billion (CNY7 billion) treasury bonds through the Hong Kong market yesterday following its issuance of USD2 billion of sovereign bonds on the same market in October.

The ministry offered institutional investors CNY6.5 billion worth of bonds -- CNY4 billion of two-year bonds, CNY2 billion of five-year bonds and CNY500 million of 10-year ones with interest rates of 3.90 percent, 4.10 percent and 4.15 percent, respectively.

The ministry issued CNY500 million of bonds to foreign central banks and regional currency authorities -- CNY300 million of two-year ones and CNY200 million of five-year ones with interest rates of 3.90 percent and 4.10 percent.

Hong Kong's role as a global financial center and its position as the largest offshore yuan market will be further cemented by the finance ministry's issuance of yuan-denominated bonds in the region, Liu Jie, Standard Chartered PLC's [LSE:STAN; HK: 2888; NSE:STAN] executive director and Chinese head of strategy, told CCTV.

The central government issued yuan-denominated treasury bonds in Hong Kong for the first time on Sept. 28, 2009 and has issued more in every year since. The government has issued CNY178 billion of bonds in Hong Kong.