***********************************************************
The Chief Executive in Council has approved that a resolution be introduced into the Legislative Council (LegCo) to authorise the Government to borrow a maximum amount of HK$200 billion or equivalent under the Government Bond Programme (GBP).
The resolution aims to expand the size of the GBP from the current HK$100 billion to HK$200 billion to provide adequate room for the GBP to continue, with a view to further promoting the sustainable development of the local bond market.
A spokesman for the Financial Services and the Treasury Bureau said today (April 24), "We hope that the GBP, with an enlarged size, can cater for the increasing demand of local and international investors for high quality bonds issued by the public sector. This will help promote the sustainable development of the local bond market as a financial intermediation channel to complement the banking sector and equity market, thereby strengthening the competitiveness of Hong Kong as an international financial centre and asset management centre."
The Financial Secretary proposed in the 2013-14 Budget raising the borrowing ceiling of the GBP by HK$100 billion to allow the Government to plan issuance of Government bonds in the next few years, having regard to prevailing market conditions and the GBP's capacity to support the development of different segments of the local bond market.
The Government tentatively intends to move the resolution in LegCo on May 15, 2013.
Ends/Wednesday, April 24, 2013
Issued at HKT 12:00
NNNN
