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Hong Kong is a city and special administrative region of China. Its economy is one of the most developed in the world. The main features of the economy is low taxation, almost free port trade and a well-established international financial market.
Hong Kong has quite a liberal debt market. International investors are free to invest in debt instruments issued in Hong Kong. There are no restrictions on foreign borrowers tapping the domestic debt market to finance their business. Hong Kong bond market is represented by government and corporate sectors. Government sector bonds is represented by Hong Kong government bonds, Exchange Fund Bills and Notes (EFBNs) issued by the Hong Kong Monetary Authority (HKMA), bonds issued by statutory bodies (Hong Kong Airport Authority and Hong Kong Housing Authority) and bonds issued by government-related corporations (Bauhinia Mortgage-Backed Securities Limited, Hong Kong Mortgage Corporation, Hong Kong Link 2004 Limited, etc.). The Hong Kong Monetary Authority (HKMA) coordinates the offering of government bonds and manages the investment of the sums raised under the Government Bonds Programme. Green bonds are issued by government to demonstrate the government’s support for sustainable development and determination to combat climate change and to promote the development of green finance. The government also issues Silver Bonds in order to provide a higher-paying savings option for seniors and iBond Series of retail bonds (the inflation-linked retail bonds launched under the retail bond issuance programme). Hong Kong has an active and liquid corporate-sector bond market. Local corporations increasingly regard market-based financing as a workable alternative to bank-based funding. Bonds are traded in the secondary market on exchanges or through over-the-counter ("OTC") markets. |
