Treasury Markets Association to Launch Renminbi Bond Price Fixing

Press Releases

11 Jul 2007

Treasury Markets Association to Launch Renminbi Bond Price Fixing

The Treasury Markets Association (TMA) announced today (Wednesday) that it will launch a daily price fixing commencing 12 July 2007 for renminbi denominated bonds issued in Hong Kong.

The introduction of the fixing will enhance the price transparency of the renminbi bonds and facilitate the development of the renminbi bond market in Hong Kong. The fixing will be launched on the same day as the first renminbi bond is issued in Hong Kong and will be extended to other new renminbi bond issues in the future.

The Renminbi Bond Price Fixing is calculated by taking the arithmetic mean of the mid-price quoted by designated Contributing Banks, excluding the two highest and the two lowest prices (see Annex A for details). A total of 14 banks have been designated by the TMA to contribute quotes (see Annex B).

There will be one Official Fixing per day, published at 11:30 a.m. on every trading day from Monday to Friday. The Closing Reference Price will also be published at 4:30 p.m. on the same day.

"The TMA fully supports the issuance of renminbi bonds in Hong Kong, which will enhance the breadth of our treasury markets," said Mr Y.K. Choi, Chairman of the TMA Executive Board. "Apart from launching the fixing, TMA is actively considering other means to help develop the renminbi bond market in Hong Kong."

"The launch of the Renminbi Bond Price Fixing would be conducive to the development of the renminbi bond market in Hong Kong. In addition to enhancing transparency of the market, it will serve as a market benchmark for future renminbi bond issues," said Ms Anita Fung, Chairman of the Market Development Committee of TMA.

Bloomberg L.P. has been appointed the Calculating Agent of the Fixing. The Renminbi Bond Price Fixing information will be published on Bloomberg via the Treasury Markets Association page TMA<GO>. The fixings will be released at 11:30 a.m. and 4:30 p.m. Hong Kong time from Monday to Friday except on public holidays or if Typhoon Signal 8 and above or the Black Rainstorm warning is hoisted.

Annex A and Annex B

Treasury Markets Association
11 July 2007

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Last revision date : 06 September 2011