McDonald's sells renminbi take-away

As signals go, how could it be bettered It’s hard to see how China could choose a more appropriate and iconic borrower to pave the way for further internationalisation of its currency.

Yesterday, McDonald's Corporation the fast-food and burger joint -- became the first multi-national non-financial corporate to issue a renminbi-denominated bond in Hong Kong. The Rmb200 million $29.5 million deal, although small, promises to open up a new funding venue for international companies to raise working capital for their China operations.

It is one further step towards the internationalisation of China’s currency, the renminbi, despite the continued maintenance of strict currency controls on the country’s capital account.

While many investors and commentators...