The People's Bank of China (PBOC), China's central bank, has approved eight foreign institutions to trade in the country's interbank bond market as part of a pilot program in which banks can invest offshore yuan in onshore yuan bonds, China Business News reported Tuesday.

The eight banks are the Hong Kong branches of Agricultural Bank of China Ltd., China Construction Bank Corp., Citigroup Inc., Bank of Tokyo-Mitsubishi UFJ Ltd., as well as Nanyang Commercial Bank Ltd., Wing Lung Bank Ltd., Wing Hang Bank Ltd. and Chiyu Banking Corp.

Within the quotas handed out by the PBOC, these banks are now allowed to invest their yuan holdings in government and corporate debt in China's interbank bond market.

Last August, the PBOC launched the pilot program to allow foreign institutions to enter its interbank bond market in an effort to "encourage cross-border renminbi trade settlement" and "broaden investment channels for renminbi to flow back" into China.

China previously approved 11 foreign banks, including Standard Chartered PLC and HSBC Holdings PLC, to participate in the pilot program.

China's business press carried the story above on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.