China’s Ministry of Finance has unveiled plans to issue 10 billion yuan in renminbi government bonds via Hong Kong in 2018.
State-owned media reports that China’s State Council has given its approval to the offshore issuance of 10 billion yuan in renminbi government bonds and USD$3 billion in sovereign bonds by MOF.
Of this amount the 10 billion yuan in renminbi government bonds will be issued in two separate offerings of 5 billion yuan in the Hong Kong Special Administrative Region, one of which will take place in the first half of 2018 and the other in the second half of 2018.
The 3 billion US dollar sovereign bond offering will take place in the second half of the year. ‘
Paul Chan, Hong Kong’s finance secretary, said that the move demonstrated Beijing’s commitment to cementing the Special Administrative Region’s status as a global hub for offshore RMB business, and would foster the development of the local bond market.