Hong Kong to issue 20 billion RMB bonds

The Bank of Communications announced yesterday (January 3) that it would issue no more than RMB 20 billion in Hong Kong before the end of 2012, with no more than 10 billion trillion yuan of bonds to be issued by the end of this year.　　The move would break the record of Hong Kong's local renminbi bonds, and a recent massive debt issue was the 8 billion trillion-dollar bond issued by the Treasury Department last December. According to yesterday's announcement, the above-mentioned bonds are scheduled for a period of 2-5 years, the interest rate will be based on market rates and investor demand. The issuer includes institutional and retail investors. Debt issuance will be used to finance loans, bank liquidity and other uses.　　The debt issuance proposal will be considered at the first meeting of the general Meeting of shareholders in Shanghai on February 23 this year. The Bank of China said last December 9 that it would issue 20 billion yuan of bonds this year, and its board had agreed to the bill.　　It is understood that the Bank of China will review the issuance proposal at the first meeting of the general meeting this year.　　According to Hong Kong media, although the renminbi bond market in Hong Kong is maturing, the retail market is still dominated by financial institutions, with Bank of China, National Development Bank and import and Export bank, and the Treasury issuing renminbi bonds in Hong Kong. According to the analysis, the total amount of new RMB bonds issued by Hong Kong in 2011 could be increased to $80 billion to $100 billion.