South China's Guangdong issues offshore regional government bonds in Hong Kong

South China's economic powerhouse of Guangdong Province on Tuesday issued three offshore regional government bonds in the Hong Kong Special Administration Region (SAR) for the first time, garnering significant attention from high-quality international investors, including those from the United Arab Emirates (UAE) and Switzerland.

The Guangdong Provincial Government held a roadshow in Hong Kong on Monday to promote the issuance of the offshore Chinese yuan regional government bonds, marking the official launch of this offering.

With a total issuance size of five billion yuan (about 703 million U.S. dollars), the bonds comprise a two-year issuance for projects in the Nansha District of Guangzhou, the provincial capital of Guangdong, a three-year issuance for major infrastructure projects in the Pearl River Delta in South China, and a five-year green bond.

"Investors view this bond issuance as a key milestone for the integration mechanism of the Greater Bay Area (GBA)," said Li Linfeng, head of Transaction Banking and Capital Market Department of China Construction Bank (Asia), referring to the Guangdong-Hong Kong-Macao Greater Bay Area which is a megalopolis comprising the special administrative regions of Hong Kong and Macao as well as nine cities in the neighboring Guangdong Province.

"Offshore Chinese yuan in Hong Kong typically offers low returns when kept as deposits. As a result, there is a demand for Chinese yuan-denominated financial products, making regional government bonds, especially from more developed regions, particularly appealing," said Geng Xiao, director of the Institute of Policy and Practice of the Shenzhen Finance Institute (SFI).

Guangdong has previously issued offshore Chinese yuan bonds in the Macao SAR for four consecutive years. With this latest issuance, Guangdong becomes the first mainland regional government to issue offshore Chinese yuan bonds in both Hong Kong and Macao.

"On one hand, we are leveraging Hong Kong's unique role as an international financial center, and hub for offshore Chinese yuan transactions, further enhancing cooperation and regulatory alignment within the Greater Bay Area. On the other hand, we aim to encourage more mainland institutions and enterprises to expand their financing channels and attract international investors to participate in major projects in the GBA," said Chen Guanghuang, head of the Department of Finance of Guangdong Province.

A total of 28 offshore Chinese yuan regional government bonds have so far been successfully issued in Hong Kong and Macao.

Guangdong Province made history with its issuance of 2.2 billion yuan (about 309 million U.S. dollars) in offshore Chinese yuan regional government bonds in Macao on October 12, 2021, followed by Shenzhen's 5-billion-yuan (703-million-U.S.-dollar) issuance in Hong Kong in 2022. These milestones together marked the official start of internationalization of China's regional government bonds.

Since then, south China's Hainan Province and Guangdong Province including Shenzhen City have continued to issue offshore Chinese yuan bonds, each met with strong investor demand.

Guangdong Province ranked the first among the 31 provincial-level regions in the Chinese mainland with a GDP of 13.57 trillion yuan (1.89 trillion U.S. dollars) in 2023, driven by manufacturing, trade, consumption and innovation.

South China's Guangdong issues offshore regional government bonds in Hong Kong

Vice President of the International Committee of the Red Cross (ICRC) Gilles Carbonnier on Saturday said he was encouraged by the humanitarian organization's deepening relationship with China.

In an interview with China Global Television Network (CGTN) during the 11th Xiangshan Forum, Carbonnier said the ICRC has not only been engaged in dialogue with China and other states, but has also welcomed the country's involvement in the launch of programs to help people affected by conflicts.

"China is definitely a major player. We really are very encouraged to see that our relationship with the PLA, with the People's Liberation Army, with the Ministry of Defense deepening on several issues of common interest, especially on International Humanitarian Law and humanitarian priorities. We at the ICRC really look forward to developing this dialogue, of course, here in Beijing, but also as we're doing in Geneva, in New York, as well as in the field, for example, where Chinese peacekeepers are also active," he said.

The three-day Xiangshan Forum opened on Thursday in Beijing, attracting more than 500 representatives of official delegations from more than 100 countries and international organizations, and over 200 experts and scholars to discuss global security.

At the forum, Carbonnier delivered a speech on the topic of the international mechanism and global security governance.

In'tl Red Cross Committee vice president hails deepening ties with China