Hong Kong is reaching out to more sovereign debt issuers, as this week’s Apec Finance Ministerial Meeting (FMM) provides a valuable opportunity to demonstrate the depth and advantages of its financial markets.
Its signature dim sum bond market could leverage low fundraising costs relative to developed markets and risk diversification considerations to become a magnet for sovereign borrowers, including many members of the Asia‑Pacific organization, according to analysts.
“Elevated U.S. interest rates have increased the cost of dollar borrowing, making issuance in alternative currencies—including offshore renminbi—more attractive for many issuers, such as sovereign governments,” said Marcus Yin, assistant vice‑president of the sovereign risk group at Moody’s, a credit rating agency.