China to Sell $3.46 Billion of Treasury Bonds in Hong Kong
What’s new: China’s Ministry of Finance unveiled a plan Monday to sell 23 billion yuan ($3.46 billion) of yuan-denominated treasury bonds in Hong Kong this year.
The bonds will be issued in four batches, with the first issue of 7.5 billion yuan of notes set for June 15, the Finance Ministry said. Maturity periods of the bonds will range from two to five years.
The Hong Kong Monetary Authority will announce a detailed issuance and subscription plan later, the ministry said.
Why it matters: The planned issue will mark the 14th consecutive year for the Finance Ministry to sell treasury bonds in Hong Kong as Beijing seeks to boost the Asian financial hub’s status as an offshore yuan center.
This year’s bond sale will be the biggest in years, exceeding 20 billion yuan in 2021 and 15 billion yuan in 2020. As of the end of 2021, the central government sold a total of 238 billion yuan of treasury bonds in Hong Kong.
In addition to treasury bonds, Beijing has also been pushing forward local government bond sales in Hong Kong. In October 2021, the Shenzhen city government sold 5 billion yuan of notes in three batches in Hong Kong, the first offshore bond issuance by a local authority.
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