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BackChina’s Ministry of Finance issued two sovereign bonds in a row
China’s Ministry of Finance issued two sovereign bonds in a row
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中国新闻网14 minutes agoBusiness1 min readChinaView original

China’s Ministry of Finance issued two sovereign bonds in a row

Previously, a RMB 4 billion green sovereign bond was successfully issued in Canada.

Quick Look

  • China's Ministry of Finance announced that it will issue no more than US$2 billion in sovereign bonds in Hong Kong in the week of November 16, with the approval of the State Council.
  • Previously, the Ministry of Finance had just successfully issued a RMB 4 billion green sovereign bond in Canada, which was enthusiastically subscribed by international investors.

AI-generated summary

Why It Matters

China's Ministry of Finance has recently actively issued sovereign and green bonds at home and abroad to promote financial opening up.

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China News Service, Beijing, November 11 (Reporter Zhao Jianhua) China's Ministry of Finance announced on the 11th that with the approval of the State Council, it will issue US dollar sovereign bonds in Hong Kong in the week of November 16, with a scale of no more than US$2 billion.

This will be the second sovereign bond issued by the Treasury in recent times. On the 9th, the Ministry of Finance successfully issued 4 billion yuan of green sovereign bonds in Canada on behalf of the central government. Among them, the three-year term is 2 billion yuan, with an issuance interest rate of 1.4%; the five-year term is 2 billion yuan, with an issuance interest rate of 1.5%.

The RMB green sovereign bond was warmly welcomed by the market, and international investors enthusiastically subscribed. The total subscription amount was 13.5 times the issuance amount. Liao Min, China's Vice Minister of Finance, said that the issuance of RMB green sovereign bonds in Canada for the first time demonstrates China's firm determination to promote green and low-carbon development and high-level opening-up. It also reflects the realistic willingness of China and Canada to strengthen economic and financial dialogue and deepen pragmatic cooperation. It has positive significance in promoting China-Canada relations to enter a healthy, stable and sustainable development track.

The RMB green sovereign bond investors are diverse in types and geographically distributed. Investors in the Asia-Pacific region accounted for 77%, and non-Asia-Pacific investors accounted for 23% in total; sovereign and super-sovereign investors, banks, fund asset management and insurance, traders and other types of investors accounted for 32%, 45%, 22%, and 1% respectively; green and sustainable investors accounted for 41%. Wang Yunfeng, President and CEO of HSBC Bank (China) Co., Ltd., who serves as the joint lead underwriter and joint bookrunner, said that this demonstrates the firm confidence of international investors in China's sovereign credit and further demonstrates the market appeal of offshore RMB assets.

What to Watch

AI outlook — possibilities, not facts

  • Issuance of US dollar sovereign bonds in Hong Kong during the week of November 16

    Very likely · Within weeks

Open Questions

  • What is the specific issuance interest rate for US dollar sovereign bonds?
  • How are the maturities of U.S. dollar sovereign bonds allocated?

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This article was originally published by 中国新闻网.

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