ISSUING AUTHORITIES:

National Development and Reform Commission

Hong Kong Monetary Authority

DATE OF ISSUANCE:

October 18, 2023

The National Development and Reform Commission (NDRC) and the Hong Kong Monetary Authority (HKMA) signed a Memorandum of Understanding (the “MOU”) On October 18, 2023 on supporting cross-border financing by Chinese enterprises and promoting the development of the Hong Kong bond market. 

In accordance with the MOU, the NDRC and the HKMA agree to strengthen communication and cooperation, and to facilitate the cross-border financing activities of Chinese enterprises by leveraging Hong Kong’s unique strengths in financial and professional services.

The major aspects of the MOU include:

● To support bond issuance by Chinese enterprises in Hong Kong: the two authorities agree to provide policy facilitation to eligible Chinese enterprises to issue bonds in Hong Kong, in compliance with relevant regulations and supervisory requirements in the financial sector.

● To organise joint promotional activities: the two authorities will jointly organise and participate in     promotional activities to enhance the understanding of the relevant policies and requirements regarding Chinese offshore debts among market participants.

● To promote diversified development of the Hong Kong bond market: the two authorities will jointly promote the development of Hong Kong’s green and sustainable finance market and dim sum bond market, seek to expand the size, and enhance the liquidity of the dim sum bond market, as well as broaden the scope of RMB business. The two authorities will also jointly promote innovation in Hong Kong’s bond market and expand product variety by encouraging issuers to issue innovative bonds.

Reference:

国家发展改革委与香港金管局签署关于支持中资企业跨境融资和推动香港债券市场发展的谅解备忘录