HKSAR Government welcomes issuance of bonds in Hong Kong by Hainan Provincial Government and Shenzhen Municipal Government
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The People's Government of Hainan Province will issue offshore RMB local government bonds not exceeding RMB5 billion this month. The bonds will be issued in two-year tenor, three-year tenor and five-year tenor. The two-year bonds are blue bonds, of which the proceeds will mainly be used for maritime economy and marine protection projects. The three-year and five-year bonds are sustainability bonds.
The Shenzhen Municipal People's Government will issue offshore RMB municipal government bonds not exceeding RMB5 billion. The bonds will be issued in two-year tenor, three-year tenor and five-year tenor. The three-year bonds and five-year bonds are green bonds and blue bonds.
The Chief Executive, Mr John Lee, said, "The Government of the Hong Kong Special Administrative Region welcomes the issuance of RMB bonds in Hong Kong by the People's Government of Hainan Province and the Shenzhen Municipal People's Government. The Hainan Provincial Government is the first Mainland provincial government to make use of our financing platform and professional services for bond issuance, while the Shenzhen Municipal Government is issuing bonds in Hong Kong again after its successful experience last year. Both fully demonstrate that Hong Kong is the premier platform for issuance of RMB debt products and the Central People's Government's support towards Hong Kong reinforcing the position as an international financial centre. This strengthens Hong Kong's status as the global offshore RMB business hub, as supported by the National 14th Five-Year Plan, and enriches further the range of RMB financial products available in the Hong Kong market. It also increases the vibrancy of the offshore RMB bond market and promotes the internationalisation of the RMB."
The Financial Secretary, Mr Paul Chan, said, "We welcome the issuance of RMB bonds by the People's Government of Hainan Province and the Shenzhen Municipal People's Government through Hong Kong's financing platform to attract international capital to support the country's sustainable development. This increases the breadth and depth of our RMB debt market, fully leveraging Hong Kong's role as a major platform for the allocation of assets by international investors and the unique gateway for international capital to access the Mainland. In accordance with the Exemption from Profits Tax (Shenzhen Municipal People's Government Debt Instrument) Order (Cap. 112DP) effective since March 2022, the interest paid or profit received arising from the debt instruments issued in Hong Kong by the Shenzhen Municipal People's Government is exempted from the payment of profits tax. We will amend the legislation to extend the above tax concessions to cover the debt instruments issued in Hong Kong by the People's Government of Hainan Province and other Mainland provincial and municipal governments."
Ends/Monday, October 24, 2022
Issued at HKT 16:09
Issued at HKT 16:09
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