(Caijing.com.cn) China's central bank said it will "progressively" allow more foreign companies to issue yuan-denominated bonds on the mainland, as it increasingly opens and internationalizes its capital and financial markets.

The People's Bank of China made the comment in a statement on July 24 after a meeting in north China's Changchun City.

Standard Chartered Bank (China), HSBC Holdings Plc and Japan's Mizuho Corporate Bank said in June they are preparing to offer "panda bonds," as such issues are known.   

The International Finance Corp., an arm of the World Bank, and the Asian Development Bank have issued panda bonds. Both issues were launched in October 2005.

The development and promotion of the panda bond market dovetails with China's effort to internationalize its currency, the yuan, as it seeks a greater say in multilateral financial institutions.

The central bank published rules governing a trial yuan settlement program on July 2. The program links five mainland cities – Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan – to Hong Kong and Macau.