The government issued the first 50 billion official debt officials in September and said it was still in consultation.

BEIJING, June 18 (Xinhua) Hong Kong's Financial Secretary, Mr John Tsang, announced in this year's budget the issue of a new batch of government debt of HK $100 billion to promote the development of the Hong Kong bond market.　　According to foreign sources, the government plans to issue the first batch of $50 billion in government debt in September, which is more than the SAR government's earlier reference to a substantial increase of 10 billion to 20 billion yuan a year, with a minimum interest rate of 1 below and the earliest possible submission to the Legislative Council next month for approval.　　A spokesman for the Hong Kong Financial Services and Treasury Bureau said 17th that the report was incorrect and that the HKSAR Government was currently collecting market views on the first year's issue. Foreign exchange 17th quoted sources said that the government is to issue a total value of HK $50 billion in September, the issue of 2-10 years, the minimum coupon rate is expected to be less than 1%.　　The source said that the initial issuance of the first batch of government debt was greater than that of Mr Tsang referring to the market's absorption of HK $10.02 trillion a year because it hoped to influence the market. According to the source, the government initially recommended that the first batch of outstanding government debt should be HK $30 billion, but members considered that the scale was too small to affect the market, and subsequently, the proposed increase was increased to HK $50 billion and will be submitted to the Legislative Council this month to seek approval.　　If the motion is passed, the bonds will be issued in September.　　However, in response to enquiries, a spokesman for the financial Services and the Treasury Bureau pointed out that the information on the government's "HK $50 billion debt issued in September" was incorrect. The relevant authorities consulted the major market participants on the details of the government bond programme earlier, and the primary view of the major market players was that the market could absorb 100 to HK $20 billion of government bonds in a year's time. There is therefore a need for further collection of market views and for a more detailed assessment to determine the amount of issuance planned for the first year.　　In the process, consideration will be given to the current market situation and the impact of circulation on other issuers in the market. As for the Secretary for the Treasury, Chan, earlier last month, expressed the hope that the first official debts would be formally launched in the third quarter of this year, a spokesman for the Treasury said that the relevant units were still maintaining this objective and that the resolution could be passed in the Legislative Council session this year.　　She also pointed out that the Legislative Council subcommittee would be discussing it again on 18th. Hkab, executive director of HSBC, said 17th that the industry had a certain expectation of the government's introduction of bonds and hoped that the policy would enliven Hong Kong's bond market and second-hand market. But if bond yields are less than 1 per cent as reported, they are not attractive to investors,　　Therefore, I hope that the SAR government can increase its annual debt issuance quota and set a higher interest rate. Huangyuanhui, director and deputy general manager of ICBC, said that the Hong Kong Special Administrative Region Government had already experienced and operated the issue of debt issuance, so that the bonds could be passed smoothly in this legislative session. He pointed out that it was still difficult to determine the level of interest rates, but based on the fact that investors in Hong Kong had never had a better investment and return, they believed that investors had a certain degree of interests in bonds. He also pointed to the topThe bonds will be long-term, the shortest may be 3 years to 5 years or more.　　Huang Weihong, director of the Hang Seng Bank's financial market, said that the current capital market in Hong Kong is very abundant and the balance of the banking system is over $200 billion. Economist Guan that the market's appetite for official debt may not be as much as 50 billion yuan, as the market expects global inflation to come, when interest rates are likely to rise, investors will not necessarily be interested in government debt when they see the risk, and it is recommended that the SAR should reduce the first batch of official debts to $25 billion for testing market demand. At the same time, short, medium and long-term government debt can be introduced and the measurement of bonds will be gradually strengthened to deepen the debt market in Hong Kong.