HKEx Welcomes First Offer Of RMB Sovereign Bonds Through Its Facilities


Hong Kong Exchanges and Clearing Limited (HKEx) welcomes the decision by the Ministry of Finance of the People’s Republic of China (MoF) to list renminbi (RMB)-denominated sovereign bonds again on its Stock Exchange (the Exchange), and for the first time use the Exchange’s facilities for a public offer of its bonds.

The State Council previously granted approval for the MoF to issue a total of RMB23 billion of sovereign bonds in Hong Kong in 2013. The first batch, valued at RMB13 billion, was issued on 26 June 2013 and the MoF plans to issue the rest, valued at RMB10 billion, in late November.

Among the RMB10 billion of sovereign bonds to be issued this time, RMB3 billion of bonds with a two-year maturity will be open for retail subscription by Hong Kong residents, who will be able to subscribe through Participants of the Exchange’s Central Clearing and Settlement System, or CCASS.

The other RMB7 billion of bonds (including RMB5 billion of three-year bonds and RMB2 billion of five-year bonds) will be issued to institutional investors. Like the first batch of bonds, the entire second batch (RMB10 billion in total), will be listed on the Exchange for trading after issuance.

“We welcome the further issuance of sovereign bonds in Hong Kong and the continued listing of such bonds on our Exchange, which will help further enhance Hong Kong’s status as an offshore RMB centre, accelerate the internationalisation of the RMB and support the Mainland’s further economic development,” HKEx Chief Executive Charles Li said.

“We also welcome the fact that retail investors can now subscribe to the bonds through our facilities and their brokers. The continued listing of RMB-denominated sovereign bonds is an important step for us as we expand into fixed income, currency and commodities, a key aspect of our current strategy.”

In order to prepare Exchange and CCASS Participants for the subscription for the retail tranche, a briefing session for representatives of Exchange and CCASS Participants will be organised later in November where the subscription arrangements including subscription process flow and a standard application form template will be shared. Details of the briefing session will be announced in due course.