1、ASIAN DEVELOPMENT BANK THE BOND MARKET IN HONG KONG, CHINA AN ASEAN+3 BOND MARKET GUIDE UPDATE SEPTEMBER 2020 ASIAN DEVELOPMENT BANK THE BOND MARKET IN HONG KONG, CHINA AN ASEAN+3 BOND MARKET GUIDE UPDATE SEPTEMBER 2020 Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) 2020 Asian Developm

2、ent Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 8632 4444; Fax +63 2 8636 2444 www.adb.org Some rights reserved. Published in 2020. ISBN 978-92-9262-377-7 (print), 978-92-9262-378-4 (electronic), 978-92-9262-379-1 (ebook) ISSN 2616-4663 (print), 2616-4671 (electroni

3、c) Publication Stock No. TCS200264-2 DOI: http:/dx.doi.org/10.22617/TCS200264-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB

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9、e ADB logo. Corrigenda to ADB publications may be found at http:/www.adb.org/publications/corrigenda. Notes: ADB recognizes China as the Peoples Republic of China; “Hong Kong” as Hong Kong, China; and “Macau” as Macau, China. In this report, international standards for naming conventionsInternationa

10、l Organization for Standardization (ISO) 3166 for economy codes and ISO 4217 for currency codesare used to reflect the discussions of the ASEAN+3 Bond Market Forum to promote and support implementation of international standards in financial transactions in the region. ASEAN+3 comprises the Associat

11、ion of Southeast Asian Nations (ASEAN) plus the Peoples Republic of China, Japan, and the Republic of Korea. The economies of ASEAN+3 as defined in ISO 3166 include Brunei Darussalam (BN; BRN); Cambodia (KH; KHM); the Peoples Republic of China (CN; CHN); Hong Kong, China (HK; HKG); Indonesia (ID; ID

12、N); Japan (JP; JPN); the Republic of Korea (KR; KOR); the Lao Peoples Democratic Republic (LA; LAO); Malaysia (MY; MYS); Myanmar (MM; MMR); the Philippines (PH; PHL); Singapore (SG; SGP); Thailand (TH; THA); and Viet Nam (VN; VNM). The currencies of ASEAN+3 as defined in ISO 4217 include the Brunei

13、dollar (BND), Cambodian riel (KHR), Chinese renminbi (CNY), Hong Kong dollar (HKD), Indonesian rupiah (IDR), Japanese yen (JPY), Korean won (KRW), Lao kip (LAK), Malaysian ringgit (MYR), Myanmar kyat (MMK), Philippine peso (PHP), Singapore dollar (SGD), Thai baht (THB), and Vietnamese dong (VND). Co

14、ntents Note: the chapter and section numbering reflects that of the ASEAN+3 Bond Market Guide 2016: Hong Kong, China, and includes only the chapters and sections being updated. Acknowledgments iv Abbreviations v I. Overview 1 A. Introduction 1 III. Characteristics of the Hong Kong Bond Market 4 B. T

15、ypes of Bonds and Notes 4 N. Definition of Professional Investors 5 IV. Bond and Note Transactions and Trading Market Infrastructure 7 G. Repo Market 7 J. Bond Connect (From 2017) NEW 8 X. Recent Developments and Future Direction 12 A. Recent Developments 12 Appendixes 2 Resource Information 14 3 Gl

16、ossary of Technical Terms 15 Figure 1 Local Currency Bonds Outstanding in Hong Kong, China 2 Acknowledgments The ASEAN+3 Bond Market Guide 2016: Hong Kong, China was published in November 2016.1 Being a mature market, the main features and functions in the bond market in Hong Kong, China have largel

17、y remained consistent in the years since publication, which means that a complete review is not required just yet. At the same time, an update on a number of recent market developments, particularly those that mirror or touch on developments in other jurisdictions, such as Bond Connect, is necessary

18、. As such, this update was compiled to coincide with the publication of the The Inter- Bank Bond Market in the Peoples Republic of China: An ASEAN+3 Bond Market Guide in August 2020. In addition to a description of Bond Connect features in the Hong Kong bond market, this update contains information

19、on the Government Green Bond Programme, the Green Bond Grant Scheme, the Pilot Bond Grant Scheme, a revision of the Professional Investor Rules, as well as additions to eligible collateral for the RMB Liquidity Facility offered by the Hong Kong Monetary Authority. The ASEAN+3 Bond Market Forum (ABMF

20、) Sub-Forum 1 team wishes to thank the Hong Kong Monetary Authority, the Securities and Futures Commission, as well as ABMF International Experts for their inputs and review of this update. No part of this update represents the official views or opinions of any institution that participated in this

21、activity as an ABMF member, observer, or expert. The ABMF Sub- Forum 1 team bears sole responsibility for the contents of this update. This update and those relating to other ASEAN+3 bond markets are available for download from AsianBondsOnline.2 September 2020 ASEAN+3 Bond Market Forum 1 See https:

22、/asianbondsonline.adb.org/documents/abmf_hkg_bond_market_guide_2016.pdf. 2 See https:/asianbondsonline.adb.org. Abbreviations ABMF ASEAN+3 Bond Market Forum ADB Asian Development Bank AMBIF ASEAN+3 Multi-Currency Bond Issuance Framework ASEAN Association of Southeast Asian Nations ASEAN+3 Associatio

23、n of Southeast Asian Nations plus the Peoples Republic of China, Japan, and the Republic of Korea BCCL Bond Connect Company Limited CCDC China Central Depository (iii) bonds issued by statutory bodies (e.g., Airport Authority Hong Kong and Hong Kong Housing Authority); and (iv) bonds issued by gover

24、nment-related corporations (e.g., Bauhinia Mortgage-Backed Securities Limited, Hong Kong Mortgage Corporation, and Hong Kong Link 2004 Limited). Starting in 2015, the tenors of bonds issued under the EFBN Programme and the Government Bond Programme were streamlined. The HKMA now only issues new EFBN

25、s for tenors of 2 years or less, and new Government Bonds for tenors of 3 years or more. After the streamlining, there is now a unitary benchmark yield curve representing the long-run credit standing of the Government of the Hong Kong Special Administrative Region (HKSAR) of the Peoples Republic of

26、China (PRC), with EFBNs providing the benchmark yield for 2 years or less, and Government Bonds providing the benchmark yield for 3 years or more. A unitary benchmark yield curve provides a better reference for issuers in pricing their Hong Kong dollar issues. The Central Moneymarkets Unit (CMU) was

27、 set up primarily to provide computerized clearing and settlement facilities for EFBNs, which provide benchmark yields that guide private debt pricing. In December 1993, the HKMA extended this service to other Hong Kong dollar debt securities. Since December 1994, the CMU has been linked to internat

28、ional clearing systems such as Clearstream and Euroclear, which has helped promote Hong Kong dollar debt securities to overseas issuers and investors. The CMU is also available for foreign currency-denominated debt, including Australian dollars, Chinese renminbi, euros, New Zealand dollars, Singapor

29、e dollars, and United States (US) dollars. In December 1996, an interface between the CMU and the real-time gross settlement interbank payment system was established. This enables the CMU system to provide its members with real-time and end-of-day delivery-versus-payment services. Bond trading takes

30、 place mostly through over-the-counter markets. However, some bonds are also listed and may be traded on the securities market of Hong Kong Exchanges and Clearing Limited, which is the holding company that owns the Stock Exchange of Hong Kong Limited (SEHK), which operates the stock exchange in Hong

31、 Kong, China. 2 The Bond Market in Hong Kong, China (Update September 2020) In the Hong Kong dollar debt market, the total value of outstanding Hong Kong dollar debt instruments remained stable over the 15 months prior to March 2020 after having gradually increased in the preceding 15-month period (

32、Figure 1). Outstanding Hong Kong dollar debt has increased significantly since 2015, the last year for which data was included in the ASEAN+3 Bond Market Guide 2016: Hong Kong, China. Figure 1: Local Currency Bonds Outstanding in Hong Kong, China (USD billion) Note: Data as of 31 March 2020 and incl

33、ude bonds issued by nonresidents. Source: AsianBondsOnline. Hong Kong, China Bond Market. https:/asianbondsonline.adb.org/economy/?economy=HK. The HKMA continues to implement the Government Bond Programme to promote the further and sustainable development of the local bond market. In May 2019, the G

34、overnment of the HKSAR of the PRC successfully offered its inaugural green bond under the Government Green Bond Programme, with an issuance size of USD1 billion and a tenor of 5 years. At the end of 2019, the total outstanding amount of 13 issues of institutional bonds stood at HKD91.3 billion. In a

35、ddition, two Sukuk (Islamic bonds) issued under the Government Bond Programme were outstanding, each with an issuance size of USD1 billion.3 The government issued the fourth batch of Silver Bonds in 2019, an inflation-linked bond with a minimum annual interest rate of 3% that targets Hong Kong, Chin

36、a residents aged 65 or above. The size of the issuance was HKD3 billion, with a tenor of 3 years. The number of valid applications was 56,564, with a total subscription of more than HKD7.9 billion. 3 Selected statements and data adapted from the Hong Kong Monetary Authority. 2020. Quarterly Bulletin

37、 March 2020. No. 102. Hong Kong, China. 0 50 100 150 200 250 300 350 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 USD billion Central Bank Corporate Government Overview 3 A decrease in bond issuance by overseas issuers, mainly financial institutions and

38、corporates, was observed in 2019, while multilateral development banks also reduced their issuances. Local corporates expanded their funding scale in the Hong Kong debt market, with their issuance volume up 14% from 2018. Meanwhile, statutory bodies and government-owned corporations roughly maintain

39、ed their issuance size in the Hong Kong dollar bond market in 2019, while Authorized Institutions fund-raising activities to support their short-term funding needs decreased 6% year-on-year. The total issuance volume in the Hong Kong dollar debt market in 2019 stood at HKD4.184 trillion. In the 2020

40、21 Budget, the government announced its plan to issue green bonds totaling HKD66 billion within the next 5 years, in line with the market situation. The government also announced that it would resume the issuance of iBonds (inflation- linked bonds) and continue to issue Silver Bonds to promote the d

41、evelopment of the retail bond market and the silver market. The HKMA will continue to support the development of the local bond market through implementation of the Government Bond Programme, Government Green Bond Programme, and various other initiatives. The regulatory environment is also conducive

42、 to the implementation of the ASEAN+3 Multi-Currency Bond Issuance Framework (AMBIF) developed by the ASEAN+3 Bond Market Forum (ABMF) under the guidance of the Asian Development Bank (ADB). The key features of the Hong Kong bond market are further enhanced by the acceptance of governing laws other

43、than those of Hong Kong, China for professional bond and note issuances, and documentation and disclosure standards close to those of international markets. Further details on AMBIF can be found in the ABMF Report on the implementation of AMBIF, published by ADB.4 Information on recent initiatives a

44、nd developments with relevance for the Hong Kong bond market can be found in the update to Chapter X in this note. 4 See ADB. 2015. Implementation of the ASEAN+3 Multi-Currency Bond Issuance Framework: ASEAN+3 Bond Market Forum Sub-Forum 1 Phase 3 Report. Manila. https:/www.adb.org/publications/impl

45、ementation-ambif-asean3-bond-market-forum-sf1-p3. Characteristics of the Hong Kong Bond Market The Securities and Futures Commission (SFC) and, in particular, the HKMA continue to drive the development of the Hong Kong bond market in line with global and regional trends, as well as changes in partic

46、ipants expectations and behavior. Since the ASEAN+3 Bond Market Guide was first introduced in 2012, there have been and continue to be substantial changes in some market characteristics that are not limited to the regulatory environment. As such, some of the more recent additions or changes to the c

47、haracteristics of the Hong Kong bond market are described in this chapter in the context of the existing structure of the ASEAN+3 Bond Market Guide 2016: Hong Kong, China, which was published in 2016. B. Types of Bonds and Notes All Government Bonds and most corporate bonds are eligible for clearing

48、 in the CMU and maintained in book-entry form. EFBNs and Government Bonds are in scripless form, while other paper is either bearer or registered and held in physical form, represented by either definitive or global notes. The most common currencies in which bonds are denominated are the Hong Kong d

49、ollar, offshore Chinese renminbi, euro, and US dollar. 1. Bonds and Notes Issued by Public Entities In Hong Kong, China, bonds and notes issued by public entities include those issued by the Government of the HKSAR of the PRC, the HKMA as the de facto central bank and representative of the government, statutory boards, and other government-related corporations. a. Government Bonds The Government Bond Programme, consisting of the