CNH bond issuance to grow in Hong Kong amid low cost and new repo arrangements

A wide range of factors have paved the way for a larger offshore Renminbi fixed income market, according to senior bankers.

Bankers working across China’s debt capital markets (DCM) have said that more CNH-denominated bond issuances are to be expected in Hong Kong, mainly due to ‘cheaper for longer’ funding costs of Renminbi. A recently introduced repurchase arrangement will also help boost market liquidity.

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