HONG KONG – A government-formed committee has recommended leveraging the opportunities presented by the Chinese mainland market and new global trends to further promote the bond market development in Hong Kong. 

The Steering Committee on Bond Market Development in Hong Kong released its report on Wednesday, which puts forward three strategic directions after analyzing holistically the bond market development in the city.

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The two other strategic directions are: upgrading infrastructure to attract business and resources and promoting social and financial inclusion and facilitating participation of retail investors.

Hong Kong is an international financing centre, and the HKSAR Government has been working closely with financial regulators and market participants in promoting the development of Hong Kong's bond market.

Paul Chan, Financial Secretary, HKSAR

The Steering Committee, which was set up in August 2021, also provided detailed recommendations under each of the three strategic directions.

Financial Secretary Paul Chan Mo-po said the Hong Kong Special Administrative Region government has been working closely with financial regulators and market participants to promoting the development of Hong Kong's bond market. 

“Through measures such as issuing government bonds, providing tax relief and subsidies, as well as strengthening our ties with the mainland market through the Bond Connect, the bond market of Hong Kong has seen rapid growth in the past years, transforming Hong Kong into the premier issuance location among Asian institutions and for Asian international bonds,” he said.

The Steering Committee has reviewed the progress Hong Kong has made, surveyed the latest global landscape, and helped chart the city’s way forward “as we continue to strengthen Hong Kong's position as a leading international bond hub”, he added. 

Chaired by the finance chief, the steering committee, the steering committee was tasked to formulate a roadmap for promoting the diversified development of Hong Kong's bond market.

Green Bond Report 2022

On Wednesday, the government also released the Green Bond Report 2022, which sets out the allocation of the proceeds raised from green bond issuances,, including that of the inaugural retail green bond issued in 2022, and the expected environmental benefits of the projects financed.

So far, the government has issued government green bonds worth close to $10 billion, funding various green projects in the city and providing important benchmarks for potential issuers, the finance chief said.

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The government will continue to promote market development through various measures to consolidate the SAR’s position as a regional and international green and sustainable finance hub, he added.

Secretary for Financial Services and the Treasury Christopher Hui said the Green Bond Report 2022 is rich in content, adding that it helps the public understand the development of green and sustainable finance in Hong Kong, and encourages them to participate in building a green future for the city together.