Business · Markets · 2 hrs ago
Hong Kong seeks more sovereign borrowers for its yuan bond market
Hong Kong is seeking more sovereign borrowers for its offshore yuan bond market.
The push is being made during this week’s Apec Finance Ministerial Meeting in the city.
The market is known for dim sum bonds, which are issued in offshore renminbi.
Higher US interest rates have made dollar borrowing more costly, prompting some governments to consider other currencies.
Analysts say Hong Kong could attract issuers with comparatively low fundraising costs and the chance to diversify their risks.
The city wants to strengthen its role as a yuan bond hub, including among Apec members.
The meeting provides an opportunity to showcase Hong Kong’s financial markets, but no new borrowing deals are specified.
Hong Kong is seeking more sovereign debt issuers for its yuan bond market.
The city is using this week’s Apec Finance Ministerial Meeting to showcase its financial markets.
Analysts say Hong Kong’s dim sum bond market may appeal to governments because of lower fundraising costs than in developed markets and opportunities to diversify risk.
Higher US interest rates have made borrowing in alternative currencies, including offshore renminbi, more attractive to some issuers.
- Who
- Hong Kong is seeking sovereign borrowers, including governments that are members of the Asia-Pacific organisation.
- What
- The city is appealing to more sovereign debt issuers for its yuan bond market.
- When
- This week, during the Apec Finance Ministerial Meeting.
- Where
- Hong Kong’s financial markets, including its offshore renminbi bond market.
- Why
- Analysts say the market can offer lower fundraising costs than developed markets and help borrowers diversify risk.
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- Market
- Hong Kong’s dim sum bond market
- Meeting
- Apec Finance Ministerial Meeting
- Alternative currency
- Offshore renminbi
- Source of analysis
- Marcus Yin, Moody’s sovereign risk group
What people are saying
Elevated US interest rates have increased the cost of dollar borrowing, making issuance in alternative currencies – including offshore renminbi – more attractive for many issuers, such as sovereign governments.