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20 Billion RMB Is 4.6 Times Oversubscribed In Hong Kong Institutions

2011/8/18 13:10:00 45

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20 Billion Over Subscription Of Treasury Bonds

The third issue of the Ministry of Finance in Hong Kong

RMB

The scale of the national debt reached a record 20 billion yuan and the issuance period was more abundant, which further considered the diversified investment demand of Hongkong investors.

It is reported that the proceeds from treasury bond issuance will mainly be used for agricultural infrastructure, affordable housing, education, medical and health services, readjustment of industrial structure, energy conservation and emission reduction, technological pformation and infrastructure construction.

The issuance of the Treasury bonds, of which 15 billion yuan was part of the institutional subscription at 9 a.m. yesterday. The retail part will be priced with reference to institutional coupons. The retail part will be part of the two-year term and will be subscribed through the distribution line from today until the 31 th of this month.

Among them, the 6 billion yuan three year treasury bond issued to the institution was 0.6%, lower than the market expected 1%, indicating that the RMB bonds are attractive and strong demand.

The total number of tenders for the issuance of bonds is 4.6 times, and the total institutional investors' issuing amount is 15 billion yuan, and the subscription amount is as high as 69 billion yuan.

The retail coupon rate of 5 billion yuan in the biennium is 1.6%.

Enthusiasm of institutions

Bid

It reflects the favor of the international market for Renminbi denominated assets.

On the one hand, in the context of the coexistence of debt problems in the US and Europe, RMB bonds are better in terms of robustness; on the other hand, they can also get excess returns from the appreciation of the renminbi.

Ceng Junhua, the financial secretary of Hongkong, revealed that the amount of treasury bonds sold to institutional investors was 15 billion yuan, which was divided into four years: 3 year interest rate 0.6%, 5 year 1.4%, 7 year 1.94%, 10 year 2.36%.

Li Yong, Vice Minister of finance, said at the launching ceremony that he continued to issue RMB bonds in Hongkong, greatly raised the scale of issuance, further enriched the term structure, and regarded it as a long-term institutional arrangement, which was supported by the central government.

Hong Kong

We should consolidate and enhance the status of international financial centers and promote the effective measures for the construction of offshore RMB business centers in Hongkong.