HSBC Global Banking and Markets operations around the world
Global markets in mainland China
Mainland China's bond market
Mainland China's bond market has experienced rapid growth in recent years and is becoming more responsive to macroeconomic indicators. The development of a bond market serves as an important platform for macro-financial control and will play a role of increasing significance in conducting financial reform and safeguarding financial stability.
Mainland China's bond market comprises of two markets: the inter-bank market and the stock exchange bond market. The main difference between these two markets is their respective participants. Commercial banks (both local and foreign) are only permitted to participate in the inter-bank market. The inter-bank bond market is predominantly made up of Government bonds, Financial bonds, and People's Bank of China (PBoC) bills.
Foreign banks are not yet allowed to participate in the issuance or trading of Renminbi corporate bonds.
For more information on our product offering in mainland China's bond market, please contact us
Fixed income
HSBC is the one of the first three foreign banks underwriting PRC government bonds, the primary dealer for PBoC bills, and is a major participant in mainland China's bond market.
Products in the inter-bank bond market are classified based according to their issuers as follows:
| Government bonds | Issued by the Ministry of Finance (MoF) |
| Special Government Bonds | Issued by the Ministry of Finance (MoF) and first introduced in September 2007 |
| Central bank bills | Issued by PBoC |
| Commercial paper | Launched in 2005 to provide alternative financing channel for companies. Usually less than 1yr tenor with typical issuing volume from CNY 0.1billion to 1billion |
| Financial bonds | Issued by three policy banks: China Development Bank, Export-Import Bank of China, Agricultural Development Bank of China or approved commercial banks and other financial institutions |
| Corporate bonds | Currently only a few issuers |
| Foreign bond/Panda bond | Issued by approved international financial development institutions such as IFC and ADB, accounting for a tiny proportion |
| ABS/MBS | MBS mainly issued by CCB, ABS first introduced in December 2006 |
| Sub-debt bonds | Issued by authorised financial institutions |
Onshore Treasury
Global Markets in mainland China
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