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Banking & finance
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SCMP Editorial
Editorial
SCMP Editorial

A blooming bond market shows trust in Hong Kong dollar assets

The latest Hong Kong dollar-denominated offerings encourage more issuers from Hong Kong and overseas to explore local‑currency financing

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A view of Hong Kong International Airport in October 2025. Airport Authority Hong Kong has issued HK$19 billion in Hong Kong dollar-denominated bonds. Photo: Jelly Tse
SCMP Editorial
Editorials represent the views of the South China Morning Post on the issues of the day.
It is springtime for Hong Kong’s bond issuers. Airport Authority Hong Kong (AAHK) has just offered the largest Hong Kong dollar-denominated bond series ever. It follows a public offering of Hong Kong dollar-denominated green bonds by the MTR Corporation. Cathay Pacific, the city’s flagship airline, has also raised HK$2.08 billion (US$265.4 million) by selling Hong Kong dollar-denominated bonds, marking its first foray into the local-currency debt market.

All three offerings were well received, helping to raise the international profile of the local debt market. The volume of debt issuance this year is already up more than 87 per cent year on year, evidence of investors’ growing confidence and interest in Hong Kong dollar assets.

AAHK’s HK$19 billion offering was nearly three times oversubscribed. The success is testament to the Hong Kong dollar’s credibility as a reliable funding currency and the city’s role as a fixed income and currency hub, as well as AAHK’s strong credit standing. It’s the same with the MTR Corp, which raised HK$18.88 billion with its latest green bonds.
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The MTR Corp says the money raised will be used to fund new infrastructure, asset renewals and sustainable development projects. AAHK is expected to use the borrowing to refinance existing debt and fund capital expenditure, as well as other purposes.

The latest offerings will encourage more issuers from Hong Kong and overseas to explore local‑currency financing, reinforcing the local dollar’s position as a reliable funding currency.

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Technically, they will also help build more reliable Hong Kong dollar benchmarks in the debt market by providing a constructive reference point for other issuers considering using the local currency. They also encourage greater interest in secondary-market trading. That, in turn, enhances liquidity and price transparency for everyone, whether issuers or investors.

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