Press Releases in Hong Kong

Offshore yuan debt issuance jumps to 263.6b yuan in 1H

In this Oct 24, 2008 photo, a pedestrian walks past the building housing Hong Kong Monetary Authority's office in Hong Kong. (TED ALJIBE / AFP)

The offshore yuan debt market bounced sharply in the first half of this year when new issuances increased by 39.2 percent from the year before to 263.6 billion yuan, while overall bond fund inflows moderated, the Hong Kong Monetary Authority reported on Wednesday.

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Driven by new issuances, total outstanding offshore yuan debt securities increased by 24.4 percent year-on-year to 607.2 billion yuan at the end of June, according to the HKMA

Higher offshore yuan debt issuance was mainly driven by a 230.9 percent surge in issuances by Hong Kong Special Administrative Region issuers, together with an increase of 123 percent in issuances by private Chinese mainland issuers and overseas issuers, according to the Monetary and Financial Stability report issued by the HKMA.

Issuances of Chinese mainland authorities fell by 25 percent from the year before to 60 billion yuan.

Driven by new issuances, total outstanding offshore yuan debt securities increased by 24.4 percent year-on-year to 607.2 billion yuan at the end of June, according to the report.

In the Hong Kong dollar debt market, bond fund inflows moderated.

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Total issuance in the first half increased by 3.1 percent from last year to HK$2.17 trillion. This was despite a reduction of 0.9 percent in the issuance of Exchange Fund Bills and Notes. The increase was largely due to a 77.9 percent increase in non-EFBN issuances by the government sector and a 34.8 percent increase by authorized institutions, the HKMA reported.