Bond Market Development

Hong Kong is a leading bond hub in Asia, ranking third in terms of issuance in Asia ex-Japan, after Mainland China and Korea¹. The HKMA and the HKSAR Government have introduced various initiatives to promote the further development of Hong Kong’s bond market. These include the implementation of the Exchange Fund Bills and Notes Programme, Government Bond Programme and Government Green Bond Programme. Various tax concessions and incentive schemes are also available for eligible bond issuers and investors.

¹ G3 and local currency issuance. Source: Asian Development Bank

Exchange Fund Bills & Notes Programme

Exchange Fund Bills and Notes (EFBNs) are Hong Kong dollar debt securities issued by the HKMA. They constitute direct, unsecured, unconditional and general obligations of the Hong Kong Special Administrative Region Government for the account of the Exchange Fund and have the same status as all other unsecured debt of the Government.

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Government Bond Programme

The Government Bond Programme is an initiative of the Government to develop the local bond market. The primary objective of the Programme is to promote the further and sustainable development of the local bond market through systematic issuance of government bonds.

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Government Green Bond Programme

The Government Green Bond Programme is an initiative of the Government to promote the development of green finance, especially the green bond market, in Hong Kong. Proceeds raised under the Programme would be used for financing government projects with environmental benefits.

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Tax Concessions and Incentive Schemes

The Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) is a three-year programme announced in the 2021-22 Budget, aiming to support green and sustainable bond issuance and lending in Hong Kong. The Scheme provides subsidy for eligible bond issuers and loan borrowers to cover their expenses on bond issuance and external review services. As the administrator of the Scheme, the HKMA announced a guideline on the GSF Grant Scheme on 4 May 2021 and the Scheme has come into operation on 10 May 2021.

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Last revision date : 27 March 2024