[Commentary] On October 12, the Shenzhen Municipal People's Government issued offshore RMB bonds in Hong Kong to knock the gong, and it was held simultaneously at the dual venues of Shenzhen and Hong Kong Special Administrative Region.
It is reported that this is the first time that a local government in the Mainland has issued RMB government bonds overseas.
The Chief Executive of the Hong Kong Special Administrative Region Carrie Lam said in a speech that the bond issuance is of great significance, which once again shows that the cooperation between Hong Kong and Shenzhen is becoming closer and that there are good complementary advantages.
[Concurrent] Carrie Lam, Chief Executive of the Hong Kong Special Administrative Region
This bond issuance is of great significance. First of all, this is the first time that a local government in the Mainland has issued bonds in Hong Kong, and it is also the first time that a Mainland (local) government has issued bonds overseas. It is an important milestone in promoting the internationalization of the RMB. To enhance the status of an international financial center, a number of measures to interconnect the financial markets of the two places have been launched over the years, which not only benefits the development of the Hong Kong bond market, but also facilitates the internationalization of the renminbi.
[Explanation] Shenzhen Mayor Qin Weizhong attended the press conference at the Shenzhen Stock Exchange and said that as an important engine for the construction of the pilot demonstration zone and the Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen’s issuance of offshore RMB local government bonds not only has a good foundation, but also has realistic demand. .
[Concurrent] Qin Weizhong, Mayor of Shenzhen
The issuance of bonds in Hong Kong effectively combines the needs of Shenzhen with the advantages of Hong Kong, and has been actively subscribed by international investment institutions. This fully reflects the high recognition of Shenzhen’s development and government credit by the international capital market, and also reflects Hong Kong’s role in the global financial system and Significant advantages in the international capital market.
[Explanation] On the same day, Huang Liuquan, deputy director of the Hong Kong and Macao Affairs Office of the State Council, attended the press conference via video connection. He said that the issuance is of great significance to assisting the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and promoting the internationalization of the RMB.
[Concurrent] Huang Liuquan, Deputy Director of the Hong Kong and Macao Affairs Office of the State Council
The first is conducive to consolidating and enhancing Hong Kong’s status as an international financial center, promoting the interconnection of the financial markets of the two places, and promoting Hong Kong’s better integration into the overall development of the country.
Second, it is conducive to promoting the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and further deepening the in-depth integration and development of the Greater Bay Area.
The third is to help attract more international investors to participate in my country's construction by holding RMB bonds, promote the internationalization of the RMB, and promote the development of the national financial market.
[Explanation] It is reported that the Shenzhen Municipal People's Government will issue 5 billion yuan of offshore RMB bonds in Hong Kong, and the related bond-raising funds will be used for the construction of ordinary public high schools, urban rail transit and water treatment projects.
Liang Yuan and Luo Siyu report from Hong Kong
Editor in charge: 【Luo Pan】