Hong Kong's sukuk ambitions cause a stir

Central bankers in Malaysia and Hong Kong have been discussing ways to develop Islamic finance products and help grow the industry.

The prospect of Hong Kong issuing sukuk has stirred the city's finance community.

Central bankers in Hong Kong held a joint conference with their Malaysian counterparts in mid-April to publicise the territory’s plans to issue an Islamic bond, known as a sukuk, later this year.

The event came a month after Hong Kong’s legislative council passed a bill that would allow the government to launch a $500 million to $1 billion transaction as well as create parity between the tax treatment of sukuk profit payments to investors and interest paid on conventional bonds.

“We look forward to sharing our Islamic finance marketplace...

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