CCB may tap London market

China Construction Bank Corp (CCB) is considering selling 2.5 billion yuan ($400.25 million) in yuan-denominated bonds in London and may do so as early as this week, a person close to the matter told Dow Jones Newswire Friday, a deal which would mark the first time a mainland-based enterprise offered a "dim sum" bond in any overseas market other than Hong Kong.

CCB has already mandated 11 investment firms to manage the placement - including seven foreign banks and four domestic peers - the source went on to say.

Telephone calls and e-mail enquiries sent by the Global Times to CCB regarding the matter were not returned by press time.

Reports of the State-owned lender's intentions to place a yuan-denominated bond in one of Europe's largest financial markets come at a time when demand overseas for yuan investment vehicles is on the rise, experts told the Global Times. Still, some were skeptical about whether other Chinese businesses would follow CCB's lead amid concerns about the rising cost of offering yuan bonds offshore.

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