Two mainland Hong Kong-owned corporate banks allowed to issue renminbi bonds in Hong Kong

Hong KONG-funded corporate banks in the mainland are going to issue renminbi bonds.　　19th, the reporter learned that the HSBC (China), Bank of East Asia (China) two banks to issue renminbi bonds in Hong Kong has been approved by the State Council, they will become the first batch of renminbi bonds issued by the mainland Hong Kong-owned corporate banks.　　The central bank said the move would help mainland Chinese banks gain access to the renminbi through multiple channels, as well as support the development of the Hong Kong market and boost investor confidence. The "State Council's views on the current financial promotion of economic development", issued late this year, pointed out that "allowing Hong Kong companies or financial institutions with more business in the mainland to issue renminbi bonds in Hong Kong".　　Since then, the central bank in conjunction with the National Development and Reform Commission and other relevant departments to promote the issue of debt-related issues of serious research, and the issuance of debt applications in East Asia China, HSBC China conducted a qualification review, and found that it meets the relevant qualification requirements.　　A week ago, Shanghai held a meeting and announced the specific tasks and measures to promote the construction of two Shanghai centers, including the "support for long-term capital of the renminbi in the Shanghai Foreign Legal entity Bank issued renminbi bonds, and steadily promote qualified foreign enterprises to issue renminbi bonds in China".　　Chedon, an analyst at the Overseas Chinese Bank of Singapore, told the newspaper that the move might be to pave the road for internationalization of the renminbi, and to prepare for the development and promotion of the RMB bond market in line with the 2020-year goal of Shanghai International Financial Center. Yesterday, HSBC China and East Asia China confirmed to this newspaper that they had passed the qualification review on issuing renminbi bonds to Hong Kong.　　The banks did not give specific answers to the timetable and scale for issuing renminbi bonds to Hong Kong.　　So far, 5 Chinese-funded policy banks and commercial banks, including the Bank, China import and export banks, BOC, CCB and the Bank of communications, have been allowed to issue renminbi bonds in Hong Kong.　　According to the regulations on issuing RMB bonds to Hong Kong by domestic financial institutions, commercial banks issuing renminbi bonds in Hong Kong should meet the core capital adequacy ratio of not less than 4%, the last three years of continuous profit, the loan losses prepared to provide sufficient, the risk supervision index regulatory bodies relevant provisions, the last three years no major violations of Some analysts believe that, based on existing results, regulators should include HSBC, East Asia, and so on in 2007 before the completion of local corporate profits also into the statistical category, which also resolved the controversial "even if the earliest completion of local corporate restructuring of foreign banks, its local legal person registration time has been less than two years, unable to meet the"　　The last three years of continuous profitability ' requirements ' question. According to the reporter previously understood that the Hong Kong corporate Bank in Hong Kong issued renminbi bonds raised funds, will be mainly used in their mainland network expansion, business development and so on.　　Senior executives from East Asia and HSBC have said on different occasions that they want to be able to list in mainland China A-share, or to raise funds by CDR to meet the needs of mainland business expansion. HSBC (China) president and chief Executive Officer WengFouzey said yesterday: "We believe that the issuance of renminbi bonds through HSBC China can establish a representative price reference for foreign banks in need of financing and contribute to the development of Hong Kong's renminbi offshore market" for the issue of renminbi bonds in Hong Kong in exchange for capital repatriation, payment of bonds and principal and interest,　　Chedon that this requires the clearing of a renminbi business in Hong Kong, and based on past experience, Bank of China (Hong Kong) will have considerable advantages in providing clearing services for renminbi business. Chedon Ming also reminded that, with the RMB in the international market on the increase in liquidity, in the mainland and Hong Kong co-ordinated supervision, we should pay attention to enhance supervision, prevention of risk promotion.