Hong Kong will expand its dim sum bond market and seek greater support for bond issuance as part of efforts to strengthen its offshore yuan business, according to the government's five-year plan.
The Hong Kong Exchanges and Clearing (HKEX) (HKG:0388) will launch the HKEX Offshore RMB Bond Index as a benchmark for market trends and an underlying index for exchange-traded funds, the government said.
Hong Kong will also seek to increase the scale and frequency of bond issuance, encourage policy financial institutions to issue bonds in the city, and develop a broader tenor structure for dim sum bonds.