Hong Kong to cement its role as a yuan bond hub by appealing to more sovereign borrowers
APEC meeting a golden opportunity to highlight the city’s financial markets and attract more Asia-Pacific sovereign debt issuers: analysts
Its signature dim sum bond market could leverage low fundraising costs relative to that of developed markets and risk diversification considerations to make the city a magnet for sovereign borrowers, including many members of the Asia-Pacific organisation, according to analysts.
“Elevated US interest rates have increased the cost of dollar borrowing, making issuance in alternative currencies – including offshore renminbi – more attractive for many issuers, such as sovereign governments,” said Marcus Yin, assistant vice-president of the sovereign risk group at Moody’s, a credit rating agency.
