5th September 2024 – (Hong Kong) The Government of the Hong Kong Special Administrative Region has welcomed the announcement from the People’s Government of Guangdong Province regarding the issuance of offshore Renminbi (RMB) local government bonds in Hong Kong. This initiative, which will see bonds listed on the Stock Exchange of Hong Kong, marks a significant development in the region’s financial landscape.
Guangdong Province plans to issue offshore RMB local government bonds totalling up to RMB 5 billion this month, with maturities of two, three, and five years. The proceeds from the two-year bonds will fund projects in Nansha, Guangzhou; the three-year bonds will support major infrastructure projects in the Pearl River Delta region; and the five-year bonds will be designated as green bonds.
Chief Executive John Lee remarked, “The Third Plenary Session of the 20th Central Committee of the Communist Party of China has emphasised the importance of enhancing Hong Kong’s status as an international financial centre and deepening cooperation within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).” He highlighted that this issuance underscores Hong Kong’s competitive edge in the RMB debt market and reinforces its role as a global hub for offshore RMB business.
Financial Secretary Paul Chan added, “This inaugural issuance of RMB bonds by Guangdong Province in Hong Kong enriches our financial products and strengthens Hong Kong’s position as a bridge connecting international capital with the financing needs of high-quality projects on the Mainland.” He expressed optimism that this move would encourage greater participation from Mainland enterprises in Hong Kong’s bond market, promoting RMB internationalisation and enhancing Hong Kong’s reputation as a bond centre.
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