Country: Hong Kong
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Hong Kong is 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

Hong Kong is 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. The bond market in Hong Kong has for some time been a significant market place for issuers and investors, in both domestic and foreign currencies. The range of product offerings, the open access for issuers and investors, both domestic and international, and the increasing significance of offshore RMB bond issuances make Hong Kong one of the most frequented international bond markets in Asia.

Public sector bonds come in the form of

• a) government bonds;
• (b) Exchange Fund Bills and Notes (EFBNs) issued by the Hong Kong Monetary Authority (HKMA);
• (c) bonds issued by statutory bodies (e.g., Hong Kong Airport Authority and Hong Kong Housing Authority);and
• (d) bonds issued by government-related corporations (e.g., Bauhinia Mortgage-Backed Securities Limited, Hong Kong Mortgage Corporation, Hong Kong Link 2004 Limited, etc.).

Hong Kong has an active and liquid private-sector bond market. The size of the market, as measured by the outstanding amount of non-public Hong Kong dollar debt securities, was HK$556 billion (US$71.7 billion) as at end-2011, accounting for around 44% of the total outstanding Hong Kong dollar debt instruments.