Hainan to issue up to 5 bln yuan offshore bonds in Hong Kong

China's island province of Hainan is issuing offshore yuan bonds in Hong Kong for the fourth consecutive year, involving no more than 5 billion yuan (HK$5.46 billion) and introducing 10-year aerospace-themed notes for the first time.

The issuance also includes three-year green bonds and five-year blue bonds.

Cai Qiang, director of Hainan’s finance department, said market reaction is expected to be stronger than in previous years, citing heightened investor interest ahead of the province’s island-wide independent customs operation, scheduled to begin by the end of this year.

He noted that the aerospace-themed notes are unique and have significant growth potential.

Looking ahead, Cai said the province will issue bonds in Hong Kong every year, emphasizing that Hong Kong remains its preferred venue.

On the size of future Hong Kong bond issuances, he said it will depend on government funding needs and market interest rates.