Memorandum of Understanding to support cross-border financing by Chinese enterprises and promote the development of the Hong Kong bond market between the NDRC and the HKMA

The Hong Kong Monetary Authority (HKMA) has published a press statement to inform that the National Development and Reform Commission (NDRC) of the People’s Republic of China and the HKMA itself signed a Memorandum of Understanding (MOU) to support cross-border financing by Chinese enterprises and promote the development of the Hong Kong bond market. Key points of the MOU include the following:
– The NDRC and HKMA agree to enhance communication and cooperation to facilitate cross-border listing by Chinese enterprises in an effort to raise capital in Hong Kong.
– Both authorities will provide policy support to eligible Chinese enterprises for issuing bonds in Hong Kong, in compliance with relevant financial market regulations.
– Both authorities will jointly organize workshops, seminars, and high-level fora to promote an understanding of applicable policies and requirements for Chinese offshore companies to list in Hong Kong.
– The NDRC and HKMA will work together to promote the development of Hong Kong’s green and sustainable finance market, dim sum bond market (market for RMB-denominated bonds issued in Hong Kong), and encourage Chinese enterprises to engage in green and sustainable financing. They aim to expand the dim sum bond market and encourage innovation in Hong Kong’s bond market.
– The two authorities will maintain regular communication to ensure the steady and orderly development of cross-border financing activities of Chinese enterprises.
According to the HKMA, the MOU aims to leverage Hong Kong’s strengths as an international financial center to facilitate cross-border financing for Chinese enterprises, and both parties look forward to close collaboration in this regard.