The Hainan Provincial Government went to Hong Kong to hold an offshore RMB local government bond roadshow

Recently, the Hainan Provincial Government held an offshore RMB bond roadshow in Hong Kong, attracting 50 institutions from nine countries and regions.

On October 16, Chen Haolian, Deputy Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region (SAR), Li Lei, Deputy Director of the Hainan Provincial Finance Department, and Xu Huaizhi, Assistant Chief Manager of the Foreign Affairs Department of the Hong Kong Monetary Authority, posed for a photo during the Hainan Provincial Government’s 2024 Global Investor Roadshow.

The Hainan Provincial Finance Department announced plans to issue offshore RMB local government bonds in Hong Kong, with a maximum issuance of 30 billion RMB. The bonds will have maturities of three, five, and ten years. Notably, the three-year bonds will be classified as sustainable development bonds, while the ten-year bonds will focus on blue financing. The funds raised will primarily support projects in healthcare, education, and other essential services, as well as key initiatives in marine protection and water environmental management, including the construction of the Wenchang International Space City.

During the roadshow, Deputy Director Li Lei presented Hainan’s fundamental situation, the progress of its free trade port construction, current development status, and credit strength to global investors, while also addressing their inquiries.

In his remarks, Deputy Secretary Chen highlighted that this marks the third consecutive year Hainan has issued bonds in Hong Kong, with this year’s issuance expected to reach 30 billion RMB. Over the three years, the total issuance is anticipated to reach 130 billion RMB.

He emphasized that this issuance will include both blue and sustainable development bonds, showcasing Hong Kong’s strengths as Asia’s leading green finance center by bridging international capital with mainland green finance needs. Additionally, this will be Hainan’s first issuance of a ten-year offshore RMB bond, which will enrich Hong Kong’s market for RMB financial products and assist in the prudent advancement of RMB internationalization.

Xu Huaizhi from the Hong Kong Monetary Authority noted that this bond issuance represents another significant milestone in financial cooperation between Hainan and Hong Kong. He added that Hong Kong serves as a key bridge connecting mainland and international markets, making it the preferred location for mainland institutions seeking overseas financing. There are hopes that this bond issuance will deepen collaboration in broader financial sectors between the two regions.