Hong Kong to list first Shanghai free-trade zone bond to defend yuan hub status

SCMP | Aug. 14, 2026, 12:52 a.m. | Original

A view of the Hong Kong skyline. Photo: Getty Images/File photo

Hong Kong is set to welcome its first Shanghai free-trade zone offshore bond, using the landmark listing to defend its status as the world’s pre-eminent offshore yuan hub, amid mounting competition from its mainland rival.

Hong Kong Exchanges and Clearing announced on Thursday that Shanghai Electric Global Capital – a financing arm of power and industrial equipment manufacturer Shanghai Electric – would list a 1.5 billion yuan (US$222.4 million) green free-trade zone bond on August 20.

The three-year note, which carries a 1.8 per cent coupon, is set to be the first time a non-financial corporate free-trade zone offshore bond has been brought to market.

Bank of China served as both global coordinator and lead manager, leveraging its Hong Kong and Shanghai units to arrange the cross-border issuance.

The governor of the People’s Bank of China, Pan Gongsheng, speaks at the Lujiazui Forum in Shanghai on June 17. Photo: Reuters
The governor of the People’s Bank of China, Pan Gongsheng, speaks at the Lujiazui Forum in Shanghai on June 17. Photo: Reuters
At the Lujiazui Forum in June, the governor of the People’s Bank of China, Pan Gongsheng, announced a pilot foreign-exchange trading programme in the Shanghai free-trade zone. The programme forms part of Shanghai’s broader action plan for offshore finance, which also targets free-trade zone bonds, trade financing and international treasury centres.

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