Subscription to China Development Bank's yuan bond issue in Hong Kong - China's first yuan-denominated offshore bond issue - has exceeded its 5 billion yuan ($658 million) limit, underwriter HSBC said on Friday.
Retail and institutional investors have subscribed but China Development Bank would try to accommodate retail demand and offer at least one lot per person, said a spokeswoman for HSBC, which is joint underwriter of the issue with Bank of China (HK), said.
The bond starts trading next Thursday. She would not give a breakdown of the retail and institutional subscriptions, which closed on Friday. State bank China Development Bank said on launching the sale last week that it would allocate at least 1 billion yuan for retail investors.
Hang Seng Bank, which is among Hong Kong banks where the issue is on sale to local retail investors with yuan deposit accounts, said demand had exceeded expectations. The two-year bond offers a chance to bet on further appreciation of China's yuan currency, which analysts expect will rise by 5 percent in the next 12 months.
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