MNI China Press Digest September 26: Yuan Bonds, E-CNY, MOFCOM

Highlights from Chinese press reports on Friday:

• The People’s Bank of China will roll out further measures to support the development of yuan bonds in Hong Kong, including promoting the bonds to become eligible collateral widely accepted overseas, Securities Times reported citing a speech by Vice Governor Zou Lan. The PBOC will support Hong Kong’s monetary authority to accept mainland bonds as eligible collateral for RMB Liquidity Facilities, as margin for Swap Connect and for various derivatives businesses of the OTC Clearing Hong Kong Limited, said Zou. Authorities will work to expand the pool of Swap Connect market makers, supply more high-credit offshore yuan assets in the Hong Kong market and accelerate preparations for the launch of yuan-denominated government bond futures there, Zou added.
• The PBOC said the e-CNY International Operation Center has officially started operations in Shanghai, launching three business platforms, Financial News reported. Included are a cross-border payment platform aimed at supporting the internationalisation and cross-border use of yuan, a blockchain service platform for standardised on-chain transactions, and a digital assets platform offering financial-grade services and supporting existing financial infrastructure to expand onto the chain. The launch follows a plan first outlined by PBOC Governor Pan Gongsheng in June, the newspaper said.
• The Ministry of Commerce launched an investigation into Mexico's tariffs and other trade restrictive measures against China, according to a ministry statement Thursday. The measures under investigation include Mexico's plans to raise tariffs on Chinese goods such as automobiles and parts, textiles, plastics, steel, home appliances and toys, as well as other trade and investment restrictions imposed in recent years, the statement said. The investigation, effective from Sept 25, will conclude in six months and can be extended by no more than three months.