The Mainland’s third bond issuance seen as support for Hong Kong's development as an offshore renminbi business centre.
The Chinese Ministry of Finance today announced plans to issue RMB20 billion in sovereign bonds in Hong Kong soon. Three-quarters of them, or RMB15 billion, will be issued through Hong Kong's Central Moneymarkets Unit for institutional investors. The other RMB5 billion will be for retail investors.
Financial Secretary John Tsang says the Government welcomes the ministry’s renminbi sovereign bonds issue in Hong Kong, its third, according to a government report.
“This round of issuance of bonds demonstrates clearly the Central Government's support for Hong Kong's development as an offshore renminbi business centre, as announced in the 12th Five-Year Plan,” Mr Tsang said.
He added that the amount of renminbi bonds issue exceeds the aggregate of bond issues in the past two years. They will be offered in three-year, five-year, seven-year and 10-year tenors for institutional investors, providing a wider range of tenors than before and helping set the benchmark yield for renminbi bonds in Hong Kong.
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