Singapore cemented its ambitions to become an offshore centre for the use of the Chinese currency as HSBC and Standard Chartered became the first banks to issue bonds denominated in renminbi, creating a new market in what are likely to be known as “Lion City” bonds.

The two banks issued a combined Rmb1.5bn ($245m), with the Standard Chartered bond – a Rmb1bn issue – scheduled to settle first at the end of this week. Both will be listed on the Singapore Stock Exchange, which yesterday launched the first depository service for renminbi bonds as well.

The moves are a culmination of steps taken by Singapore and China to create the infrastructure to allow Singapore to be used as a centre for renminbi trading as the Chinese currency continues to internationalise.