2nd UPDATE: China NDRC Approves 10 Banks To Issue CNY25 Billion Dim Sum Bonds

China's chief economic planning agency said Wednesday it has given approval to 10 banks to issue a combined CNY25 billion worth of yuan-denominated bonds in Hong Kong.

The 10 banks include policy banks and major commercial lenders: China Development Bank Corp., Export-Import Bank of China, Agricultural Development Bank of China, Industrial & Commercial Bank of China (Asia) Ltd. (1398.HK), Agricultural Bank of China Ltd. (1288.HK), Bank of China Ltd. (3988.HK), China Construction Bank Corp. (0939.HK), and the China units of Bank of East Asia Ltd. (0023.HK), HSBC Holdings PLC (0005.HK) and Bank of Communications (3328.HK).

The National Development and Reform Commission posted the approvals in a statement on its website.

In a separate statement Wednesday, the NDRC said in December it allowed China Guangdong Nuclear Power Group to take out a CNY3 billion loan from BOC Hong Kong (Holdings) Ltd. (2388.HK).

The NDRC said that was its first approval of a medium-to-long-term offshore-yuan-denominated commercial loan by a domestic company.

Chinese companies usually take out offshore yuan loans through their offshore units or joint ventures with overseas companies.

The dim-sum bond market took off in earnest in July 2010, after Beijing relaxed some regulations on yuan use in the territory. The value of new yuan-denominated bonds totaled about CNY104 billion ($16.4 billion) in 2011, almost triple the CNY35.8 billion offered in 2010, according to official figures from the Hong Kong Monetary Authority.

-By Shen Hong and Fiona Law, Dow Jones Newswires; 8621 6120-1200; [e-mail]