BEIJING — China's central bank on Dec 21 issued 5 billion yuan (about $784.57 million) worth of six-month renminbi central bank bills in Hong Kong Special Administrative Region (SAR), with an interest rate of 2.5 percent.

The issuance was well received by overseas institutional investors such as banks and funds from the United States, Europe, Asia and other countries and regions, as well as a number of international financial organizations, with the total bid amount reaching 22.2 billion yuan, over 4.4 times the amount in circulation, the People's Bank of China (PBOC) said in an online statement.

This reflects the strong attractiveness of renminbi assets for overseas investors, as well as the confidence of global investors in the Chinese economy, the PBOC said.

Since November 2018, the PBOC has gradually established a mechanism for the regular issuance of renminbi central bank bills in Hong Kong.

The issuance not only enriches the portfolio of renminbi investment products and liquidity management tools in the Hong Kong market, but also encourages domestic financial institutions and enterprises to issue renminbi bonds in offshore markets, the PBOC said.

In recent years, there has been a continuous increase in the amount of renminbi treasury bonds, financial bonds and corporate bonds in offshore markets, indicating that the issuance of central bank bills in Hong Kong plays a positive role in boosting the development of offshore renminbi markets, according to the PBOC.