October 20, 2023
BEIJING – The National Development and Reform Commission and the Hong Kong Monetary Authority signed on Wednesday a memorandum of understanding on supporting cross-border financing by Chinese mainland enterprises and promoting the development of the Hong Kong bond market.
Vice-Chairman of the NDRC Cong Liang and Chief Executive of the HKMA Eddie Yue Wai-man signed the MOU at the third Belt and Road Forum for International Cooperation in Beijing, according an HKMA statement.
Under the MOU, the NDRC and the HKMA agreed to strengthen communication and cooperation, and to facilitate the cross-border financing activities of mainland enterprises by leveraging Hong Kong’s unique strengths in financial and professional services
“Hong Kong has been a premier offshore financing platform for mainland enterprises. The signing of this MOU will further enable Hong Kong to leverage its unique strengths as an international financial center in support of mainland enterprises’ access to broadened cross-border financing channels,” Yue was quoted as saying in the statement.
“We thank the NDRC for supporting and promoting the diversified development of Hong Kong’s bond market, and look forward to collaborating closely with the NDRC to better serve the cross-border financing needs of mainland enterprises,” he added.
Under the MOU, the NDRC and the HKMA agreed to strengthen communication and cooperation, and facilitate the cross-border financing activities of mainland enterprises by leveraging Hong Kong’s unique strengths in financial and professional services.
They will support bond issuances by mainland enterprises in Hong Kong and organize joint promotional activities such as workshops and seminars to enhance the understanding of relevant policies and requirements regarding Chinese offshore debts among market participants.
The NDRC and HKMA also agreed to promote the development of Hong Kong’s green and sustainable finance market and dim sum bond market.
They will encourage mainland enterprises to conduct green and sustainable financing activities via Hong Kong’s platform; seek to expand the size, and enhance the liquidity of the dim sum bond market; and broaden the scope of renminbi business, according to the statement.
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The NDRC and the HKMA will also jointly promote innovation in Hong Kong’s bond market, and encourage issuers to issue innovative bonds, it added.