Hong Kong Reopens 5-Year RMB Bonds with Strong Demand

The Hong Kong Monetary Authority (HKMA), representing the Hong Kong Special Administrative Region Government, announced the results of the recent tender for the reopening of its 5-year RMB HKSAR Institutional Government Bonds. The tender, which took place on August 14, 2025, saw significant investor interest, according to the HKMA.

Details of the Bond Issuance

The tender involved the reopening of the Government Bond with issue number 05GB3005001, under the Infrastructure Bond Programme. A total of RMB 1.25 billion worth of bonds were offered, while the amount of applications received reached RMB 3.781 billion, resulting in a bid-to-cover ratio of 3.02. This robust demand underscores the strong investor confidence in Hong Kong's financial instruments.

Pricing and Yield Information

The average price accepted for the bonds was 101.27, which corresponds to an annualized yield of 1.697%. The lowest price accepted was 101.13, translating to a yield of 1.728%. The average tender price was recorded at 100.86, giving a yield of 1.788%. These yields are annualized, with the semi-annualized yields slightly lower at 1.690%, 1.721%, and 1.780% respectively.

Bond Characteristics

The bonds have a coupon rate of 1.97% and are set to mature on May 15, 2030. The issue and settlement date for these bonds is scheduled for August 18, 2025. The stock code for these bonds is 85023, designated as HKGB1.97 3005-R.

Comparative Market Context

This bond issuance comes at a time when global markets are navigating through economic uncertainties. The strong demand for Hong Kong’s RMB-denominated bonds highlights the territory’s stable financial environment and the continued attractiveness of its bond market to institutional investors.

The successful tender reflects the HKMA's strategic initiatives to strengthen Hong Kong's position as a leading financial hub, providing secure and appealing investment opportunities amidst global economic fluctuations.