The Shenzhen Municipal People's Government announced today (24 October) that it will issue offshore Renminbi (RMB) bonds not exceeding RMB5 billion in Hong Kong, which will be lodged with the Central Moneymarkets Unit. The Hong Kong Monetary Authority (HKMA) welcomes the issuance.
The bonds will be eligible collateral for HKMA’s RMB Liquidity Facility, for the list of eligible collateral was expanded in September 2021 to also include the RMB, USD and Euro denominated debt securities issued in offshore markets by the Local People's Governments at various levels of the People’s Republic of China (Note).
Eddie Yue, Chief Executive of the HKMA, said, “We welcome the Shenzhen Municipal People's Government to issue offshore RMB bonds in Hong Kong for the second time. Its successful inaugural issuance last year, which included a significant green portion, was well received by investors and has set a good example for other Mainland local governments and corporates to issue bonds in Hong Kong. The HKMA will provide the necessary assistance for this issuance. The issuance will strengthen Hong Kong’s status as a global offshore RMB business centre, and a premier green and sustainable finance hub in Asia. We look forward to future bond issuances in Hong Kong by the Shenzhen Government.”
Note: See the circular "Expansion of Eligible Collateral for the Renminbi (RMB) Liquidity Facility" dated 27 September 2021.
Hong Kong Monetary Authority
24 October 2022