The governments of China’s Hainan Province and the city of Shenzhen announced last month that they would issue up to 5 billion yuan (about $700 million) of offshore bonds in Hong Kong. China’s local governments, under financial stress, are using Hong Kong to access overseas funds, experts believe. However, Hong Kong’s economic outlook is not optimistic either.
The Hong Kong Monetary Authority (HKMA) announced on Oct. 24 that the government of Hainan Province would issue RMB (Chinese currency) offshore bonds in Hong Kong, with an amount not exceeding $5 billion yuan. The HKMA’s Central Moneymarkets Unit (CMU) will provide custody services for the bonds. The bonds will include blue bonds—with the proceeds used primarily for maritime economy and marine protection projects—and sustainable development bonds.
