FINANCE

Hong Kong Convertible Bonds Surge as Investors Chase Equity Upside

Published: May. 22, 2026 6:03 p.m. GMT+8

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Hong Kong’s convertible bond market is having its busiest year on record, with companies raising $14.2 billion so far this year as investors pour into equity-linked debt despite low or negative yields, according to investment bank UBS.

The boom reflects improving sentiment toward Hong Kong equities, with lower interest rates and a stronger stock market making convertible bonds more attractive than traditional share placements.

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Hong Kong's convertible bond market set a record with $14.2 billion raised so far this year, up 184% from 2024.
Last year's issuance reached a record $19.9 billion, surpassing follow-on share sales of $9.6 billion.
Investors accept zero-coupon or negative-yield bonds for potential stock gains, with Midea Group and WuXi AppTec issuing such bonds.

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Who’s Who

UBS: According to the article, investment bank UBS reported that Hong Kong's convertible bond market is at a record high, with $14.2 billion raised year-to-date, surpassing $9.6 billion from follow-on share sales. UBS data shows issuance climbed to $19.9 billion in 2024, reflecting strong investor demand despite low yields.

Midea Group: Midea Group, a Chinese company, recently issued zero-coupon convertible bonds in Hong Kong. This issuance is part of Hong Kong's record-breaking convertible bond market, which has seen $14.2 billion raised this year amid improving equity sentiment and lower interest rates.

WuXi AppTec: WuXi AppTec recently issued zero-coupon convertible bonds in Hong Kong as part of a record-breaking surge in convertible bond issuance, according to UBS data. The company is among those capitalizing on strong investor demand for equity-linked debt amid lower interest rates and improving sentiment toward Hong Kong equities.

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