China boosts Hong Kong’s position as RMB center

China will issue sovereign renminbi bonds in Hong Kong with a total value of RMB23 billion.

Financial Secretary John Tsang said this bond issuance “. . . demonstrates clearly the Central Government's support for Hong Kong's development as an offshore renminbi business centre."

The institutional tranche of the issuance worth RMB15.5 billion will be issued through the bond-tendering platform of the Central Money Markets Unit.

China also announced a new channel of issuance worth RMB2 billion for central banks and monetary authorities outside China through placement.

The Monetary Authority will establish a new HKMA CMU Central Bank Placement Coordinating Window for central banks to subscribe to the bonds. Bonds issued through it will bear the same coupon rate as the successful tenders of the same tenor.

HKMA Deputy Chief Executive Peter Pang said the authority is delighted to continue to provide the tendering platform for the issuance of offshore renminbi sovereign bonds.

"The establishment of the new HKMA CMU Central Bank Placement Coordinating Window will further promote the development of Hong Kong's renminbi bond market by expanding the investor base to include central banks and monetary authorities, and consolidate the role of Hong Kong as the global hub for offshore renminbi business."