China opens up issuance of Renminbi Bonds in Hong Kong

摘要

Purpose – The purpose of this paper is to explain the legal framework of both Hong Kong and the People's Republic of China (PRC) that governs the issuance of Renminbi bonds in Hong Kong. Design/methodology/approach – The paper explains the background; outlines key requirements under PRC laws, including eligibility requirements, application procedures in China, timing and reporting, and remittance and payment procedures; and looks at key issues arising from the regulatory regime of Hong Kong. Findings – The paper finds that, given the relatively low interest rate for Renminbi deposits in Hong Kong, Hong Kong, investors have generally welcome the inaugural issues of Renminbi bonds by the China Development Bank and the Export-Import Bank of China. Originality/value – The paper provides practical guidance from experienced Hong Kong and China securities lawyers.