The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), has had more offshore renminbi (RMB) bond listings and related fundraising this year than any other exchange, according to data from HKEx and a leading international news agency*.
The figures show the 12 listings in Hong Kong since 1 January 2012 raised RMB11.8 billion^, more than any other exchange in terms of number of offshore listings and funds raised year-to-date in 2012. There are currently 23 RMB bonds listed in Hong Kong.
Listing Rule amendments that took effect in November of last year aligned the Stock Exchange’s requirements for bond listings for professional investors with those of other major exchanges and resulted in shorter processing times for bond-listing applications.
An issuer and its debt securities for professional investors are qualified for listing in Hong Kong if the following conditions are fulfilled:
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The issuer has net assets of $100 million#;
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The issuer has audited accounts for the two years before the listing application+; and
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The debt securities have a minimum denomination of $500,000 or equivalent in foreign currency.
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The new rules and streamlined procedures for professional bond listings are applicable to bonds denominated in RMB as well as other currencies.
There are many benefits of listing bonds for professional investors in Hong Kong, including:
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Disclosure requirements are tailored for the professional market; trust deeds and prospectus are not required.
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Applications from Hong Kong-listed issuers are approved within 24 hours if all requirements are met and all documents are in order (applications from issuers listed on other exchanges are approved within 48 hours if all the requirements are met, all documents are in order and the proposed bond issue does not involve any unusual features).
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Listing fee is amongst the lowest in the region (listing fee ranges from $7,000 to $90,000 depending on the issue size and tenor).
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For RMB bonds, the largest pool of offshore RMB deposits in the world.
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Bloomberg |
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Excluded RMB bonds listed by way of introduction. |
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Not required for listed issuer on HKEx or another exchange, supranational, state corporation or special purpose vehicle for asset backed securities. |
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Not required for listed issuer on HKEx, supranational, state corporation or special purpose vehicle for asset backed securities. |
Ends