FSTB and Development and Reform Commission of Guangdong Province (Office of the Leading Group on Construction of Guangdong-Hong Kong-Macao Greater Bay Area of Guangdong) jointly organise seminar on offshore RMB bond financing in support of Greater Bay Area's development (with photos/video)
23.9.2022

The Financial Services and the Treasury Bureau (FSTB) and the Development and Reform Commission of Guangdong Province (Office of the Leading Group on Construction of Guangdong-Hong Kong-Macao Greater Bay Area of Guangdong) today (September 23) jointly organised a seminar in a virtual format to examine expanding the offshore Renminbi (RMB) bond market and leveraging bond financing to support the development of the Greater Bay Area. The seminar provides a platform for participants to explore the future direction of the "dim-sum" bond market in Hong Kong. Speaking at the seminar, the Secretary for Financial Services and the Treasury, Mr Christopher Hui, noted that the positive momentum of market development presents an opportunity for this event. He said, "At present, major global economies are entering a period of rising interest rates, therefore the cost of issuing RMB bonds is relatively low compared to other currencies such as the US dollar. It helps to drive more issuers to issue 'dim-sum' bonds in Hong Kong." In fact, according to market statistics, the issue amount of "dim-sum" bonds in the first eight months of this year was the highest ever for the same period in previous years. Mr Hui said, "The current interaction between the global, Mainland and Hong Kong interest rate markets has created a favourable market environment for the issuance of 'dim-sum' bonds. The FSTB and the Development and Reform Commission of Guangdong Province (Office of the Leading Group on Construction of Guangdong-Hong Kong-Macao Greater Bay Area of Guangdong) have taken the occasion to jointly organise this seminar. On the one hand, we hope to encourage more Mainland enterprises and institutions to issue 'dim-sum' bonds in Hong Kong. On the other hand, we would also like to provide an opportunity for the Mainland authorities, Hong Kong Government and market participants to come together to explore the future direction of leveraging bond financing to support the development of the Greater Bay Area." Mr Hui also noted that the Shenzhen Municipal People's Government issued bonds totalling RMB5 billion in Hong Kong last year, which was the first time a Mainland municipal government issued bonds in Hong Kong. He said the Hong Kong Special Administrative Region Government has implemented supporting measures to exempt the payment of profits tax in respect of interest paid or profit received arising from the debt instruments issued in Hong Kong by the Shenzhen Municipal People's Government. He added, "To facilitate more Mainland provinces and municipalities to issue bonds in Hong Kong with the authorisation of the Central Government, we will consider extending the above tax concessions to cover the debt instruments issued in Hong Kong by other Mainland provincial and municipal governments in the future." The seminar in Hong Kong was held at the Auditorium of the Central Government Offices. The Deputy Director-General of the Department of Economic Affairs of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, Mr Tan Yabo; the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan; and the Under Secretary for Financial Services and the Treasury, Mr Joseph Chan, also participated. About 50 participants from the FSTB, financial regulators, various financial industry organisations and the trade attended. On the Guangdong side, participants included the Director of Development and Reform Commission of Guangdong Province (Office of the Leading Group on Construction of Guangdong-Hong Kong-Macao Greater Bay Area of Guangdong), Mr Ai Xuefeng, the person in charge of the Development and Reform Commission of Guangdong Province, Mr Lin Jiqiao, and representatives from enterprises that have recently issued "dim-sum" bonds or those with the potential to issue bonds as well as members of relevant financial institutions. There were two keynote discussion sessions at the seminar today. Participants in both places shared the enterprises' experiences of issuing "dim-sum" bonds recently in Hong Kong, and exchanged their views on the prospect of the internationalisation of the RMB and development of the Greater Bay Area. Representatives from enterprises or organisations in Guangdong and Hong Kong also shared their insights on stage. Representatives in Hong Kong came from the Chinese Banking Association of Hong Kong, the Hong Kong Chinese Enterprises Association, the Hong Kong Association of Banks and the Hong Kong Investment Funds Association.