Wal-Mart looking to sell renminbi bonds – Bloomberg

March 18 (BestGrowthStock) – Wal-Mart Stores Inc (WMT.N: ) is mulling
selling renminbi bonds in Hong Kong, the world’s largest
retailer’s Asia Chief Executive Scott Price told Bloomberg.

The retailer is looking at options and such a move would
underscore the company’s commitment to support local
communities and China’s financial system, Price told the agency
in an interview.

Wal-Mart could be the first foreign non-financial company
to issue renminbi (yuan) debt in Hong Kong, according to the
agency.

The Hong Kong Monetary Authority has announced measures
that broaden the kind of renminbi business that is possible to
do in Hong Kong, according to IFR Asia, a Thomson Reuters
publication.

Non-Chinese non-financial entities are now allowed to issue
renminbi bonds and tap renminbi loans from domestic banks in
Hong Kong so long as the funds raised do not flow back to the
mainland and provided proceeds do not fund investments in
shares, IFR said in its Feb. 20, 2010 issue.

So far, RMB 38 billion ($5.43 billion) of renminbi bonds
have been issued in Hong Kong, including transactions from the
PRC’s Ministry of Finance and from locally incorporated foreign
banks, Bank of East Asia (0023.HK: ) and HSBC (0005.HK: )(HSBA.L: ),
IFR said. As the U.S. economy improves, more of the shoppers
who flocked to Wal-Mart to save money during the recession are
moving back to the stores they frequented before, according to
a survey by America’s Research Group. [ID:nN12176138]

Wal-Mart could not be immediately reached for comment by
Reuters outside regular U.S. business hours.

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(Reporting by Sakthi Prasad in Bangalore; Editing by
Muralikumar Anantharaman)

Wal-Mart looking to sell renminbi bonds – Bloomberg