MOU signed to Support Cross-Border Financing by Chinese Enterprises in Hong Kong
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:
國家發展改革委與香港金管局簽署關于支持中資企業跨境融資和推動香港債券市場發展的諒解備忘錄
