Successful Completion of the Subscription of the First Issue of Renminbi Bonds in Hong Kong

Press Releases

09 Jul 2007

Successful Completion of the Subscription of the First Issue of Renminbi Bonds in Hong Kong

The China Development Bank (CDB) announced today (Monday) the subscription result of the first issue of renminbi bonds in Hong Kong, reflecting strong response from both retail and institutional investors with an oversubscription rate of nearly two times. The Hong Kong Monetary Authority (HKMA) is pleased with the successful launch of the renminbi bond business in Hong Kong and the smooth operation of the subscription process.

Mr Joseph Yam, Chief Executive of the HKMA, said, "The encouraging subscription result of CDB's renminbi bonds highlight the strong demand of investors in Hong Kong for renminbi-denominated investment instruments, including high-quality renminbi bonds. The success of the first issue of renminbi bonds forms a good basis for the further development of the renminbi bond market in Hong Kong. It has also opened up a new channel for financial intermediation between Hong Kong and the Mainland."

To facilitate the issuance and trading of renminbi bonds in Hong Kong, the Real Time Gross Settlement system and Central Moneymarkets Unit have been upgraded to handle the related settlements of renminbi funds and trading of renminbi bonds respectively. The newly introduced renminbi interbank transfer service and use of renminbi cheques in Hong Kong have operated smoothly during the subscription process, signifying the enhancement of capabilities of local banks in handling renminbi financial transactions. Furthermore, the HKMA welcomes the work being undertaken by the Treasury Market Association on the arrangements for renminbi bond price fixing and repo documentation, which will be conducive to the development of a secondary market for renminbi bonds in Hong Kong.

For further enquiries please contact:
Sara Yip, Manager (Press), at 2878 8246 or
Peggy Lo, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
9 July 2007

Latest Press Releases
Last revision date : 09 July 2007