Hong Kong, China
Market Watch
| Close of November 26, 2021 |
Change From | |||
|---|---|---|---|---|
| Govt. Bond Yields | Latest Yield | Previous Day | Previous Week | YTD |
| 2 Year | 0.545 | ▼ 3.0 | ▲ 21.3 | ▲ 42.9 |
| 5 Year | 1.019 | ▼ 8.7 | ▲ 2.6 | ▲ 66.8 |
| 10 Year | 1.522 | ▼ 11.4 | ▼ 2.9 | ▲ 78.2 |
|
* Government bond yield changes are expressed in basis points. |
||||
| Currencies | Latest Rate | Previous Day | Previous Week | YTD |
| HKD per USD | 7.798 | ▼ 0.0 | ▼ 0.1 | ▼ 0.6 |
| HKD per JPY | 0.069 | ▼ 1.8 | ▼ 0.6 | ▲ 8.4 |
|
* Exchange rate changes are expressed as a percentage change. |
||||
| Interest Rates | Latest Rate | Previous Day | Previous Week | YTD |
| 1D HIBOR | 0.061 | ▲ 0.2 | ▲ 0.8 | ▲ 2.1 |
| 3M HIBOR | 0.225 | ▲ 1.5 | ▲ 2.4 | ▼ 12.6 |
|
* Interest rate changes are expressed in basis point change. |
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Policy Rates
| Change From | ||||
|---|---|---|---|---|
| Policy Rates | Latest Rate (1-Jan-1970) |
Previous Rate (1-Jan-1970) |
YTD Rate |
|
| No data available for this market | ||||
Sovereign Ratings
| Agency | Rating | Outlook | Date | |
|---|---|---|---|---|
| Regional Rating Institutions | ||||
| R&I | AA+ | stable | 2020-09-24 | |
| Non-Regional Rating Institutions | ||||
| Fitch | AA- | stable | 2021-04-15 | |
| S&P | AA+ | stable | 2020-09-30 | |
NEWS HIGHLIGHTS
- HKSAR Government’s Green Bonds Offering
- Green yuan bonds make their debut
- External merchandise trade statistics for October 2021
- Inflation creeps up in October
- Consumer Price Indices for October 2021
Read full index for News and Commentary
BOND ISSUANCES
- Exchange Fund Bills Tender Results for 23 November 2021
- Exchange Fund Notes Tender Results for 19 November 2021
- Exchange Fund Bills Tender Results for 16 November 2021
- Exchange Fund Bills Tender Results for 9 November 2021
- Tender results of the 1-year HONIA-indexed Floating Rate Notes under the Institutional Bond Issuance Programme
- Size of LCY Bond Market
- Size of LCY Bond Market in % of GDP
- Monthly Bonds Outstanding in USD
- FCY Bonds Outstanding
- Breakdown of LCY Bond Market Issuance
- G3 Currency Bond Issuance
- Government Securities Maturity Profile - LCY
- Corporate Securities Maturity Profile - LCY
- Trading Volume
- Bonds Turnover Ratio
- Interest Rate Spread - 2yrs vs 10yrs - LCY Bond
- Yield Volatility - 10yr LCY Bonds
- Bid-Ask Spreads (Survey data)
- Government Bond Market Structural Issues
- Corporate Bond Market Structural Issues
- Green Bonds Issuance
- Green Bonds Outstanding
- Social Bonds Issuance
- Social Bonds Outstanding
- Sustainability Bonds Issuance
- Sustainability Bonds Outstanding
ASEAN+3 the Bond Market in Hong Kong, China: An ASEAN+3 Bond Market Guide Update
This report provides updates on the bond market in Hong Kong, China since the publication of the ASEAN+3 Bond Market Guide 2016: Hong Kong, China. It also highlights those changes and developments that have a connection to the bond market of the People's Republic of China. The ASEAN+3 Bond Market Guide series provides member-specific information on the investment climate, rules, laws, opportunities, and characteristics of local bond markets in Asia and the Pacific. It aims to help bond market issuers, investors, and financial intermediaries understand the local context and to encourage greater participation in the region's rapidly developing bond markets.
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ASEAN+3 Bond Market Guide 2016:
Hong Kong, China
ASEAN+3 Bond Market Guide is a comprehensive explanation of the region's bond markets. It provides various information such as the history, legal and regulatory framework, specific characteristics of the market, trading and transaction, and other relevant information. The Hong Kong, China Bond Market Guide is an outcome of the strong support and kind contributions of ASEAN+3 Bond Market Forum members and experts, particularly from Hong Kong, China. The report should be recognized as a collective good to support bond market development among ASEAN+3 members.
Download Report
ASEAN+3 Multi-Currency Bond Issuance Framework
Implementation Guidelines for Hong Kong, China
August 2015
The ASEAN+3 Multi-Currency Bond Issuance Framework (AMBIF) Implementation Guidelines for Hong Kong, China are provided to review the AMBIF Elements and detail the corresponding features of Hong Kong, China market in relation to each element.
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Market Summary
Yield Movements
Between 31 August and 15 October, the local currency (LCY) government bond yield curve in Hong Kong, China remained unchanged at the shorter-end but shifted upward for tenors longer than 1 year. Yields for bonds with maturities of 1 year or less held steady, while yields for those with maturities longer than 1 year gained an average of 20 basis points (bps). On average, bond yields rose 9 bps across all tenors. The spread between the 2-year and the 10-year bond yields widened to 124 bps on 15 October from 101 bps on 31 August. Hong Kong, China’s LCY bond yield movements largely tracked the rate movements of United States (US) Treasuries during the review period as the Hong Kong dollar is pegged to the US dollar. The US bond yield curve shifted upward due to inflation fears and expectations that the US Federal Reserve will start winding down its asset purchases by November.
Size and Composition
Hong Kong, China’s outstanding LCY bonds amounted to HKD2,428.6 billion (USD311.9 billion) at the end of September. The LCY bond market posted a 0.1% quarter-on-quarter rise in the third quarter (Q3) of 2021 after an 0.8% quarter-on-quarter drop in the second quarter. The tepid growth in Hong Kong, China’s LCY bond market in Q3 2021 stemmed largely from a contraction in the corporate bond segment. On an annual basis, the LCY bond market expanded 6.1% year-on-year in Q3 2021, down from 7.0% year-on-year in the previous quarter. Hong Kong, China’s LCY bond market was split almost evenly between government and corporate bonds, with government bonds comprising 51.6% of the total at the end of September.
Policy, Institutional, and Regulatory Developments
On 24 September, the People’s Bank of China and the Hong Kong Monetary Authority announced the launch of southbound trading under the Bond Connect platform. The arrangement allows financial institutions in the People’s Republic of China (PRC) to invest in Hong Kong, China’s bond market. The scheme followed the launch of Northbound Bond Connect 4 years earlier, which provided overseas investors access to the PRC’s bond market. The Hong Kong Monetary Authority noted that Southbound Bond Connect will help drive the development of Hong Kong, China’s bond market and enhance the connection between the financial infrastructures of the PRC and Hong Kong, China.