Hong Kong Photo: VCG

China's tech hub Shenzhen has successfully issued 2025 offshore yuan-denominated government bonds in the Hong Kong Special Administrative Region on Monday, local news portal sztv.com.cn reported on Tuesday.

The report said that the move marks the fifth consecutive year that Shenzhen has arranged for local government bonds to be underwritten, registered, and listed in Hong Kong, continuously advancing the interconnectivity of financial markets in the Guangdong-Hong Kong-Macao Greater Bay Area.

The total issuance size of the bonds is 4 billion yuan ($56 million), with maturities of 2, 5, and 10 years, and the issuance interest rates have decreased year by year. 

Specifically, the 2-year bonds, with an issuance size of 1.5 billion yuan, have a coupon rate of 1.61 percent. The 5-year bonds with an issuance size of 1 billion yuan, have a coupon rate of 1.80 percent, and the raised funds will primarily be allocated to projects such as clean transportation and water management. 

The 10-year bonds (social responsibility bonds), with an issuance size of 1.5 billion yuan, have a coupon rate of 2.08 percent, and the raised funds will mainly be directed toward projects in healthcare, education, affordable housing, and urban village redevelopment.

On September 9, Shenzhen city has successfully issued 1 billion yuan offshore yuan-denominated government bond in the Macao Special Administrative Region, the first issuance of such kind by Shenzhen.

Combined with the current issuance, the total offshore yuan-denominated government bonds issued by Shenzhen city this year has amounted to 5 billion yuan.

Global Times