SZ, HAINAN GOVT BONDS TO GO ON SALE

The Hong Kong Special Administrative Region Government today welcomed the announcement by the People’s Government of Hainan Province and the Shenzhen Municipal People’s Government on issuing offshore renminbi local government bonds in Hong Kong.

This month on the Stock Exchange of Hong Kong, the Hainan Provincial Government will issue such bonds not exceeding RMB5 billion, in two, three and five-year tenors. The two-year bonds are blue bonds, of which the proceeds will mainly be used for maritime economy and marine protection projects. The three and five-year bonds are sustainability bonds.

Meanwhile, the Shenzhen Municipal Government will issue bonds not exceeding RMB5 billion in the same tenors. The three-year and five-year bonds are green bonds and blue bonds.

Chief Executive John Lee said the Hong Kong SAR Government welcomes the issuance of the RMB bonds in Hong Kong, noting that the Hainan Provincial Government is the first Mainland provincial government to make use of the city’s financing platform and professional services for bond issuance, while the Shenzhen Municipal Government is selling bonds in Hong Kong again following its successful experience last year.

Mr Lee said: “Both fully demonstrate that Hong Kong is the premier platform for issuance of RMB debt products and the Central People’s Government’s support towards Hong Kong reinforcing the position as an international financial centre.

“This strengthens Hong Kong’s status as the global offshore RMB business hub, as supported by the National 14th Five-Year Plan, and enriches further the range of RMB financial products available in the Hong Kong market. It also increases the vibrancy of the offshore RMB bond market and promotes the internationalisation of the RMB.”

Also welcoming the move, Financial Secretary Paul Chan supplemented: “This increases the breadth and depth of our RMB debt market, fully leveraging Hong Kong’s role as a major platform for the allocation of assets by international investors and the unique gateway for international capital to access the Mainland.”

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