HKMA poised to launch HK$150 million pilot bond scheme
Last year, city’s total issuance of US dollar, euro, yen and local currency denominated bonds was US$467 billion, 10pc of Asia’s total, making it the region’s third largest market, excluding Japan
Hong Kong Monetary Authority (HKMA) says its anticipated pilot bond grant scheme (being dubbed, the PBGS), earmarked for HK$150 million (US$19.11 million), will be launched soon.
The three-year strategy is part of the government’s overall HK$500 million fund, revealed under its 2018-2019 budget, aimed at boosting the city’s competitiveness in the financial services industry, and raising its share of the Asian bond market.
In 2017, Hong Kong’s total issuance of US dollar, euro, yen and local currency denominated bonds was US$467 billion, according to data from the Asian Development Bank.
That was 10 per cent of Asia’s total – excluding Japan’s total bond issuance of US$4.72 trillion – making Hong Kong the region’s third biggest bond market behind China and South Korea.
“We would like to attract new issuers and support Hong Kong’s banking business,” said executive director of the HKMA’s external department, Vincent Lee Wing-sing on Thursday.
“There are opportunities for mainland Chinese firms to consider issuing bonds in Hong Kong under the Belt and Road Initiative.”