On September 3, the People's Government of Guangdong Province successfully issued RMB 7.5 billion in offshore yuan-denominated local government bonds for 2026 in the Hong Kong Special Administrative Region, marking the province's third consecutive year of such issuances listed on the Hong Kong Stock Exchange. This initiative continues to strengthen financial market connectivity within the Guangdong-Hong Kong-Macao Greater Bay Area.

The bonds, scheduled for listing in Hong Kong on September 11, underscore the city's pivotal role in bridging issuers with global capital while offering investors a diversified range of fixed-income opportunities. The issuance is structured across three tenors: a 3-year tranche of RMB 2.6 billion priced at 1.42%, a 5-year green and blue sustainable development bond of RMB 3.5 billion at 1.52%, and a 10-year tranche of RMB 1.4 billion at 1.82%.

Proceeds from the bonds will be channeled into green and blue sustainable development projects, major water conservancy infrastructure initiatives, and key strategic platforms in Guangzhou's Nansha district, reflecting Guangdong's approach of integrating sustainable development principles with regional strategic planning in its financing framework.

The offshore bond issuance, conducted in full compliance with international market conventions, drew significant attention and robust subscription demand from investors. The book-building process attracted orders from multiple countries and regions including Singapore, Japan, Hong Kong, and Macao, with participation from policy banks, commercial banks, life insurance institutions, funds, and asset management firms.

At peak pricing, total order volume surpassed RMB 64 billion, representing an oversubscription ratio exceeding 8.5 times, demonstrating strong investor confidence in Guangdong's creditworthiness and growth prospects. From a broader perspective, Guangdong's three consecutive years of offshore bond issuance in Hong Kong represent not only a successful exploration of the internationalization path for local government debt but also a replicable model for mainland provinces seeking to leverage Hong Kong's financial hub advantages to broaden their financing channels.

Amid the current complex and shifting global interest rate environment, the oversubscription also highlights international investors' sustained preference for high-quality Chinese sovereign credit assets. As the Greater Bay Area's financial infrastructure continues to improve, the expansion potential of the offshore yuan bond market remains highly promising.