CE: Shenzhen to issue offshore renminbi bonds in HK

The Shenzhen government is expected to issue offshore renminbi bonds in Hong Kong next month, which will make it the first municipal government on the Chinese mainland to do so, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said on Wednesday (Sept. 8).

Finance is an important aspect of Hong Kong-Shenzhen cooperation, and such cooperation is expected to move to a higher level, Lam said.

Earlier, the financial authorities of Guangdong and Shenzhen announced on Aug 24 that they will issue offshore bonds in HK and Macao this year, marking the first direct offshore debt sales by domestic local governments. According to the plan, Shenzhen will sell up to 5 billion yuan (US$774 million) of bonds in HK.

The city's top official made the remarks during a question-and-answer session in the Legislative Council where she responded to lawmaker Christopher Cheung Wah-fung's question on how the HK government could align its financial services policies with that of national development.

Lam said HK should equip itself to play the role of an international financial center, the positioning given by the Central Government.

Responding to views that HK might not benefit from the national policies and could face greater competition, Lam said the Central Government has attached great importance to HK's status as an international financial center and will strive to maintain its role.

While noting that the central government will launch more measures in the future, she said HK should also make efforts itself to achieve greater development by making good use of its strengths and adopting more favorable policies.

(With inputs from China Daily)