A 3 billion yuan (457 million U.S. dollars) government bond issued by the Chinese Ministry of Finance was listed to be traded on the London Stock Exchange on Wednesday.
The yuan-denominated sovereign bond, issued in London late last month, is the first of its kind outside China. It will mature in three years and has a 3.28 percent coupon rate.
Chinese Vice Finance Minister Shi Yaobin sees the first international bond listing as an important step which shows that global investors have confidence in China's economy.
"The successful issuance of this bond has improved the credit and market status of renminbi products, adapted to the market demand for high-safety financial products outside the Asian market, and will certainly boost the prosperity and development of the offshore yuan market," said Shi.
Last year, China's central bank debuted on the London markets with a British government sale of so-called dim sum bonds that were six times oversubscribed.
The latest issue, this time directly from the Chinese government and seen as a measure of long term market faith in the Chinese economy, was three times oversubscribed.
The listing also signals success for the British government in its efforts to build London into a Western hub for the Chinese currency.
"We want to maintain our status as the world's leading financial center. Clearly we are the meeting point between East and West, and the growth, internationalization of the RMB is going to be one of the great stories of 21st century finance. We want to be at the forefront of that. We think it benefits the prosperity of both countries," said Harriett Baldwin, Economic Secretary to the UK Treasury.
Midway between Shanghai and Wall Street, London is already the world's second largest clearing house for the Chinese currency.
China and Britain have seen closer financial cooperation, especially in promoting the global use of the yuan, in recent years.
The UK was the first Western country to issue yuan-denominated sovereign bonds and the first major developed country to include the yuan into its foreign exchange reserves.
China's central bank issued 5 billion yuan of RMB-denominated notes in London last year, the first offshore issuance of such debts outside China.
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