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HKSAR Government welcomes issuance of bonds in Hong Kong by Shenzhen Municipal People's Government
     The Shenzhen Municipal People's Government announced today (September 24) that it will issue offshore Renminbi (RMB) municipal government bonds not exceeding RMB5 billion in Hong Kong in October, which will be listed on the Stock Exchange of Hong Kong. The bonds will be issued in two-year tenor, three-year tenor and five-year tenor. The three-year and five-year bonds are green bonds.
     The Chief Executive, Mrs Carrie Lam, said, "The Government of the Hong Kong Special Administrative Region (HKSAR Government) welcomes the issuance of RMB bonds in Hong Kong by the Shenzhen Municipal People's Government, which is the first time a Mainland municipal government issues bonds outside the Mainland. This enriches further the range of RMB financial products available in Hong Kong market, promotes the internationalisation of RMB and strengthens Hong Kong's status as the global offshore RMB business hub, as supported by the National 14th Five-Year Plan. The issuance showcases Hong Kong as the premier platform facilitating the Mainland to 'go global', and marks another milestone in the development of financial services in Hong Kong through increasing the breadth and depth of our RMB debt market and enhancing financial cooperation between the Mainland and Hong Kong."
     "Hong Kong and Shenzhen have established a close rapport for many years. At the High-level Meeting cum Hong Kong/Shenzhen Co-operation Meeting 2021 held early this month, the Governments of Hong Kong and Shenzhen agreed to continue to strengthen cooperation in multiple areas. Along with the opportunities presented by the Central Government's promulgation of the Plan for Comprehensive Deepening Reform and Opening Up of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, the HKSAR Government looks forward to working with the Shenzhen Municipal Government to promote a higher level of cooperation between Hong Kong and Shenzhen."
     The Financial Secretary, Mr Paul Chan, said, "We welcome the issuance of RMB bonds in Hong Kong by the Shenzhen Municipal People's Government, making use of our financing platform and professional services, thereby promoting the development of bond market and green and sustainable finance in Hong Kong. Hong Kong is a major platform for the allocation of assets by international investors and plays the unique role as the gateway for international capital to access the Mainland. In respect of interest paid or profit received arising from the debt instruments issued in Hong Kong by the Shenzhen Municipal People's Government, we plan to exempt the payment of profits tax."
Ends/Friday, September 24, 2021
Issued at HKT 10:45
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