The Hong Kong Government announces that the People's Government of Guangdong Province announced yesterday (5) that it will issue offshore RMB local government bonds in Hong Kong and be listed on the Hong Kong Stock Exchange.

The People's Government of Guangdong Province will issue no more than US$5 billion of offshore RMB local government bonds this month for two-year, three-year and five-year terms, of which two-year bonds will be raised for Nansha projects in Guangzhou; three-year bonds will be used for major infrastructure projects in the Pearl Delta region; Annual bonds are green bonds.

Chief Executive Li Jia-chao said that the SAR Government welcomes the first issuance of RMB bonds by the People's Government of Guangdong Province through Hong Kong's financing platform. In addition to fully demonstrating the great advantages of Hong Kong's issuance of RMB debt products, it further strengthens Hong Kong's position as a global offshore RMB business hub. Contribute firmly to the internationalisation of the RMB and encourage the Greater Bay Area of Guangdong, Hong Kong and Macau to play a better role as a driver of high-quality development. Hong Kong must continue to play the important role of “super contact” and “super valuer” in promoting a high level of financial openness in the country.

The Secretary for Finance, Chen Maubo, also welcomed the issuance of RMB bonds in Hong Kong for the first time by the People's Government of Guangdong Province to further enrich the Hong Kong market's RMB financial products and fully exploit Hong Kong as a bridge connecting international funds with the financial needs of quality projects in the Mainland. It will also help encourage Mainland enterprises and institutions to participate in Hong Kong's bond market, promote Hong Kong's position as a bond hub and help internationalize the RMB.