Chen Maobo: The issuance of green sovereign bonds will further improve the yield curve of offshore Renminbi bonds in Hong Kong.

On May 29, the Financial Secretary of Hong Kong, Paul Chan Mo-po, delivered a speech at the issuance ceremony of the People's Republic of China's 2026 RMB Green Sovereign Bonds by the Ministry of Finance, stating that the issuance of these green sovereign bonds is significant. It is not only the first time the central government has issued RMB green sovereign bonds in Hong Kong, but also showcases the important role of Hong Kong's "financial +" development strategy, leveraging financial strength to serve and contribute to the high-quality development of the country. The National Outline Plan for the 15th Five-Year Plan clearly states the intention to promote the internationalization of the RMB, expand the use of the RMB in international trade and investment, and enhance the level of capital account opening. As the world's largest offshore RMB business hub, Hong Kong handles approximately 75% of global offshore RMB payment settlements, with an offshore RMB fund pool size close to RMB 12 trillion. Hong Kong has always fully cooperated with national strategies, making use of the unique advantages of high internationalization and connectivity under the "one country, two systems" framework, continuously strengthening the infrastructure of the offshore RMB market, enhancing market liquidity, and continuously enriching RMB-denominated investment products and risk management tools. The Ministry of Finance has been issuing RMB sovereign bonds in Hong Kong for 18 consecutive years, with a total cumulative issuance exceeding RMB 460 billion, providing international investors with safe and reliable RMB investment options with stable returns. At the same time, Hong Kong actively attracts more issuers from home and abroad to issue "dim sum bonds": from Guangdong Province, Hainan Province issuing green and blue bonds in Hong Kong, to the Indonesian government and the Development Bank of Kazakhstan issuing RMB bonds in Hong Kong. The scale of the offshore RMB bond market continues to expand, with increasing depth and breadth, and greater international participation. The "initial issuance" of these green sovereign bonds will further improve the yield curve of Hong Kong's offshore RMB bonds, provide new investment benchmarks for international funds, attract more cross-border RMB financing and transactions in Hong Kong, and further consolidate and enhance Hong Kong's role as an offshore RMB hub. Under the "15th Five-Year Plan," the country is accelerating the comprehensive green transformation of economic and social development, building a beautiful China, and firmly advancing the "30/60" dual-carbon targets, fully demonstrating its responsibilities as a major country. The issuance of these green sovereign bonds will efficiently connect global funds to high-quality green projects, not only promoting green transformation but also bringing reasonable returns to investors, attracting more long-term capital investment in green areas and promoting sustainable development. In fact, Hong Kong has ranked first in Asia for eight consecutive years in green bond issuance, becoming a leading green financial center in Asia with a market share of about 40% in the region. We continue to innovate in green products, standards, and mechanisms, expanding the depth and breadth of green capital. In recent years, we have actively promoted the issuance of green digital bonds, the development of insurance-linked securities including catastrophe bonds, and the construction of transition finance classification standards, guiding funds more efficiently to green projects through this series of innovative financing tools. Currently, technological innovation is becoming a key engine driving green development. Hong Kong is also actively guiding international funds into cutting-edge areas, including supporting research and applications of artificial intelligence and various green technologies in carbon reduction, building a vibrant "financial + technology + green" ecosystem, injecting greater momentum into global green transformation.