HKEx welcomes first offer of RMB sovereign bonds

Hong Kong Exchanges and Clearing Limited (HKEx) said Tuesday that it welcomes the decision by the Ministry of Finance (MoF) to list yuan-denominated sovereign bonds again on its Stock Exchange (the Exchange). and for the first time use the Exchange's facilities for a public offer of its bonds.

The State Council previously granted approval for the MoF to issue a total of 23 billion yuan (3.77 billion U.S. dollars) of sovereign bonds in Hong Kong in 2013. The first batch, valued at 13 billion yuan, was issued in June and the MoF plans to issue the rest, valued at 10 billion yuan, in late November.

Among the second batch of sovereign bonds, 3 billion yuan of bonds with a two-year maturity will be open for retail subscription by Hong Kong residents.

The other 7 billion yuan of bonds will be issued to institutional investors. Like the first batch of bonds, the entire second batch, will be listed on the Exchange for trading after issuance.

"We welcome the further issuance of sovereign bonds in Hong Kong and the continued listing of such bonds on our Exchange, which will help further enhance Hong Kong's status as an offshore renminbi center, accelerate the internationalization of the yuan and support the mainland's further economic development," HKEx Chief Executive Charles Li said.

"We also welcome the fact that retail investors can now subscribe to the bonds through our facilities and their brokers. The continued listing of yuan-denominated sovereign bonds is an important step for us as we expand into fixed income, currency and commodities, a key aspect of our current strategy," Li said.