GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed

China and HK in landmark bond issuance

Monday 22 November 2010 - by Andrew Hickley

Beijing by night

China and Hong Kong have signed a memorandum of cooperation allowing for the first ever tendering and issuance of renminbi sovereign bonds on the central moneymarkets unit operated by Hong Kong.

The Chinese Ministry of Finance is preparing to issue bonds worth $750m (€550m) as a result.

The memorandum, signed by the director general of the Chinese Ministry of Finance Sun Xiaoxia, and deputy chief executive of the Hong Kong Monetary Authority Eddie Yue, will see the Chinese Ministry of Finance issuing the renminbi bonds through a bond tendering platform offered by the HKMA.

These will be comprised of three-year bonds worth $300m (€220m) alongside five year bonds of the same value, with 10 year bonds totalling $150m (€110m) filling the rest of the total.

The MoF has appointed the Hong Kong branch of the Bank of Communications to act as the issuing and lodging agent responsible for matters relating to the tendering of the sovereign bonds.


Chief Executive of the HKMA Norman Chan welcomed the move, believing it will "enhance the environment" for further issuance of renminbi sovereign bonds.

Chan said: "The signing of the Memorandum by the MoF and the HKMA on using the CMU to conduct tendering for the issuance of the renminbi sovereign bonds marks a milestone of the strengthening of financial co-operation between the Mainland and Hong Kong."


WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

No comments yet.

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don't know

View results

FIND A REGION world regions