Alvin Lang
Jan 30, 2026 09:34
HKMA declares Feb 5 tender for 10-year RMB bonds at 2.29% yield, a part of broader China-backed effort to double yuan liquidity in Hong Kong markets.
The Hong Kong Financial Authority will reopen its 10-year RMB authorities bond concern subsequent Thursday, providing an extra RMB 1.25 billion ($171 million) as town accelerates efforts to cement its place because the premier offshore yuan hub.
The tender, scheduled for February 5 with settlement on February 9, comes simply days after China’s central financial institution dedicated to supporting the HKMA in doubling yuan liquidity obtainable to native banks.
Bond Particulars and Pricing
The reopening targets present concern 10GB3505001 below Hong Kong’s Infrastructure Bond Programme. Key phrases embody a 2.29% annual coupon paid semi-annually, with bonds maturing Might 15, 2035. Present indicative pricing sits at 101.27, translating to a semi-annualized yield of two.138%.
For context, the earlier tender of this similar concern in November 2025 cleared at a median value of 101.28, implying a 2.151% annualized yield. The slight yield compression suggests regular institutional urge for food for Hong Kong authorities paper.
Minimal tender quantities begin at RMB 50,000, with profitable bidders paying RMB 263.51 in accrued curiosity per minimal denomination on settlement.
Broader Yuan Internationalization Play
This issuance matches right into a coordinated push between Beijing and Hong Kong to increase RMB market infrastructure. On January 26, China’s central financial institution introduced plans to discover launching authorities bond futures in Hong Kong—a improvement that might considerably deepen the offshore yuan derivatives market.
The timing additionally coincides with China Growth Financial institution’s Hong Kong department finishing its first-ever RMB 5.5 billion public bond providing in Macau on January 28, signaling rising regional coordination on yuan-denominated debt markets.
What Institutional Traders Have to Know
The bonds carry a number of structural benefits: they’re exempt from Hong Kong income tax and stamp obligation, backed by the HKSAR Authorities’s basic obligations, and totally fungible with present 10GB3505001 bonds already listed on the Hong Kong Inventory Trade below inventory code 85024.
Proceeds fund infrastructure tasks below Hong Kong’s established Infrastructure Bond Framework. Solely Major Sellers can submit tenders, although establishments can entry the providing by means of any vendor on the HKMA’s printed record.
Tender outcomes will hit Bloomberg (GBHK) and Refinitiv by 3:00 pm on February 5. With Beijing actively backing expanded yuan liquidity in Hong Kong, demand for government-backed RMB paper might run sturdy.
Picture supply: Shutterstock