Monetary Authority
The Hong Kong Monetary Authority is the government authority responsible for maintaining monetary and banking stability. It maintains currency stability within the framework of the Linked Exchange Rate system, helps maintain Hong Kong's status as an international financial centre, and manages the Exchange Fund.
The Central Government will issue sovereign bonds worth RMB8 billion in Hong Kong soon, the Ministry of Finance says. It will be the second issuance since September last year.
The ministry's Finance Department Director-General Sun Ziaoxia and Hong Kong Monetary Authority Deputy Chief Executive Eddie Yue signed the Memorandum of Co-operation on Using Central Moneymarkets Unit for Issuance of Renminbi Sovereign Bonds this morning in Hong Kong.
Monetary Authority Chief Executive Norman Chan said the signing "marks a milestone of the strengthening of financial co-operation between the Mainland and Hong Kong".
The sovereign bonds issue will be on a larger scale to the last round, with a longer tenor, and issued to institutional investors using a tendering method on the Monetary Authority's Central Moneymarkets Unit. About RMB5 billion worth of bonds will be issued to institutional investors through the CMU BID, comprising three-year bonds of RMB2 billion, five-year bonds of RMB2 billion and 10-year bonds of RMB1 billion. The other RMB3 billion worth of bonds will be issued to individual investors.
This issue will develop Hong Kong's renminbi bond market and further develop offshore renminbi business by enlarging the scale of the renminbi bond market in Hong Kong. It will help set the pricing benchmark for other renminbi bonds, and increase institutional investors' participation.
