SZ issues offshore yuan govt. bonds in HK

Shenzhen has completed the roadshow of issuing offshore yuan local government bonds in Hong Kong in 2022, marking the official launch of this bond issuance, sources from the Shenzhen Municipal Finance Bureau said Monday.

The Hong Kong Stock Exchange. File photo

Dai Jintao, director of the bureau, gave a roadshow demonstration to investors, introducing the city’s current development situation and future development goals at the roadshow.

He also talked about Shenzhen-Hong Kong cooperation, Shenzhen’s fiscal revenue and expenditure, debt situation and the usage of raised funds, as well as the bonds’ pricing and liquidity issues.

This is Shenzhen’s second overseas bond issuance after taking the country’s lead to successfully issue offshore yuan local bonds in 2021, which attracted extensive attention and positive response from the market and set a good example for local governments to issue bonds overseas, according to an official from the Hong Kong Monetary Authority (HKMA).

Shenzhen plans to issue 5 billion yuan (US$687 million) bonds in maturities of two, three, and five years. Among them, three-year green bonds are for Metro construction and five-year blue bonds are for water pollution control.

Shenzhen will achieve a new breakthrough this time — issuing blue bonds for the first time to support the innovative development of the city’s marine economy. The bond issuance in Hong Kong will open a new chapter for the financial markets of Shenzhen and Hong Kong, and help Hong Kong promote the diversified development of the bond market and Shenzhen continue to expand overseas financing channels, HKMA official said.