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Hong Kong Saw Fast Development in Bond Market
The bond market of Hong Kong has experienced a rapid development with steady rise in the issuing volume of bonds. Varieties in the market soared while the structure of maturity tends to rationality.
Statistics showed the bond issue in Hong Kong in the first three quarters of last year reached HKD155 billion and figures for the whole year were expected to hit new high.
Hong Kong's bond market acquired new development opportunities thanks to a set of events including the contractions of loans, increase of investment risks in the stock market and the further improvement of financial infrastructure facility. The bond raising volume in 1999 amounted to HKD155 billion. The market became brisker in 2000 and achieved almost the total of 1999 in issue volume for the first three quarters of the year. The development of bond market not only provides new channel for enterprises to use capital flexibly, but also offer new opportunity for the non-asset business of banks.
While expanding the scale of issuance, the bond market of Hong Kong is launching adjustments on varieties and structures. Some blue chips companies issue medium-term bonds, through which large amount of mid or long term capital will be raised, and the financing efficiency is thus raised.
Source: Panorama
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