Hong Kong to list first Shanghai free-trade zone bond to defend yuan hub status

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Hong Kong is preparing to list its first Shanghai free-trade zone offshore bond, worth 1.5 billion yuan, to bolster its position as a leading offshore yuan hub amid competition with mainland China. The bond issuance involves Shanghai Electric Global Capital and aims to enhance financial ties.

Hong Kong is set to welcome its first Shanghai free-trade zone offshore bond, using the landmark listing to defend its status as the world’s pre-eminent offshore yuan hub, amid mounting competition from its mainland rival. Hong Kong Exchanges and Clearing announced on Thursday that Shanghai Electric Global Capital – a financing arm of power and industrial equipment manufacturer Shanghai Electric – would list a 1.5 billion yuan (US$222.4 million) green free-trade zone bond on August 20. The...