Shenzhen becomes first Chinese mainland city to issue offshore bonds
Published: Oct 21, 2021 12:03 PM
HKEX File Photo

HKEX File Photo

The 5 billion yuan ($782 million) offshore debt offering issued by the Shenzhen municipal government in South China's Guangdong Province, was officially listed on the Hong Kong Exchanges and Clearing Limited (HKEX) on Wednesday, marking the successful completion of the first offshore debt offering issued by a local government from the Chinese mainland amid the country's opening-up of domestic financial markets.

The Shenzhen municipal government issued 5 billion yuan worth of yuan-denominated offshore bonds in the Hong Kong Special Administration Region (HKSAR) on October 11, the Shenzhen Special Zone Daily reported on Thursday.

The issuance attracted 89 investor accounts from eight countries and regions, with a total of subscription scale surpassing 17.4 billion yuan and being oversubscribed by 3.48 times.

Analysts noted that this issuance is a landmark step in the history of sub-national government in the Chinese mainland to issue offshore bonds, which not only opens up new financing channels for local governments and fills the gap in the issuance of offshore local bonds, but also promotes the joint development of Shenzhen and Hong Kong in innovative exploration for the nation's financial reform and the internationalization of the yuan.

The Chinese mainland has been further promoting and diversifying channels for the opening-up of its financial markets. The landmark Wealth Management Connect pilot program in the Guangdong-Hong Kong-Macao Greater Bay Area recorded solid results on its first day of operations on Tuesday, with strong demand for cross-boundary wealth management products.

Global Times