People's Bank of China and National Development and Reform Commission, Tentative Measures for the Administration of the Issuance of Renminbi Bonds in the Hong Kong Special Administrative Region by Domestic Financial Institutions

中国人民银行、国家发展和改革委员会境内金融机构赴香港特别行政区发行人民币债券管理暂行办法

June 02, 2007 | BY

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Hong Kong becomse the first renminbi bond market outside mainland China.

Clp Reference: 3700/07.06.08 Promulgated: 2007-06-08 Effective: 2007-06-08

Promulgated: June 8 2007
Effective: As of date of promulgation

Applicability: The term "domestic financial enterprises" means the policy banks and commercial banks established in China (excluding the Hong Kong and Macao Special Administrative Regions and Taiwan) in accordance with the law (Article 2).

For the purposes of these Measures, the term "renminbi bonds" refers to renminbi-denominated negotiable securities lawfully issued in the Hong Kong Special Administrative Region by domestic financial institutions with a term of one year or more, of which the principal and interest will be paid in accordance with agreements (Article 3).

Main Contents: To issue renminbi bonds in the Hong Kong Special Administrative Region, a commercial bank shall have a core capital adequacy ratio of not lower than 4%, maintain profitability for three consecutive years, and make sufficient provisions for loan loss (Article 6). The issue rate or price of renminbi bonds shall be determined by domestic financial institutions and underwriting institutions after negotiation (Article 10).

clp reference:3700/07.06.08promulgated:2007-06-08effective:2007-06-08

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