The Financial Services and the Treasury Bureau of the Hong Kong Special Administrative Region Government recently welcomed the Central People’s Government’s (CPG) efforts to expand the renminbi bond market and to facilitate bank borrowing by Hong Kong enterprises operating on the Mainland.
“Allowing Hong Kong banks on the Mainland to issue renminbi bonds in Hong Kong and consideration by the Ministry of Finance of the CPG to issue renminbi bonds in Hong Kong will help promote the development of the local bond market and further reinforce Hong Kong’s position as an international financial center,” a bureau spokesman said. “The relevant measures will be welcomed by the financial services sector. They will also provide investors with more choices.”
To facilitate borrowing, the CPG will allow Hong Kong enterprises to use Hong Kong assets as collateral in securing loans from Hong Kong banks on the Mainland. “We believe that the implementation of this measure under such [a] difficult business environment will help alleviate the financing problem of Hong Kong enterprises on the Mainland,” the spokesman said.
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