Largest Issue Size Since 2023: Ministry of Finance to Issue 15.5 Billion RMB Government Bonds in Hong Kong

The Chinese Ministry of Finance is set to issue the largest offshore RMB sovereign bond in over two years in Hong Kong, a move expected to provide global investors with more RMB-denominated asset options and viewed by the market as a significant signal that the process of RMB internationalization is accelerating. According to the Ministry's announcement, the second tranche of 2026 RMB government bonds will be issued in Hong Kong on April 22 with an Issue Size of 15.5 billion yuan. According to Bloomberg compiled data, this will exceed the 14 billion yuan Issue Size in February this year, becoming the largest dim sum bond issuance by the Ministry since October 2023. The announcement did not disclose detailed arrangements such as the bond term; specific information will be released via the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority. The expansion in Issue Size has been interpreted by market participants as a direct reflection of ample liquidity in the offshore RMB market and strong local demand. Xie Jiaxi, Senior Economist at DBS Bank, told Bloomberg that this also reflects the steady progress of RMB internationalization supported by robust demand. In January, Zou Lan, Deputy Governor of the People's Bank of China, clearly stated at the Asian Financial Forum that China would further increase the annual Issue Size of offshore RMB government bonds to activate market trading and enhance RMB pricing power. The current issuance arrangement of 15.5 billion yuan is fully consistent with this policy direction.