Non-renminbi bond floats catch HK fancy

The Hong Kong Special Administrative Region government may widen the ambit of profit tax exemption in the region to include the non-renminbi sovereign bonds issued by the central government, Paul Chan Mo-po, the city's financial secretary, said.

He made the statement during an investor meeting for the Chinese mainland's planned $2 billion sovereign bond issue in the city on Wednesday.

The Ministry of Finance will issue $1 billion worth of five-year sovereign bonds and $1 billion worth of 10-year sovereign bonds in Hong Kong on Oct 26, carrying a fixed interest rate.