What's happened
Hong Kong's de facto central bank has launched a grant scheme for tokenised bonds, while Rakuten plans to issue hybrid perpetual notes in the dollar bond market. These developments reflect ongoing trends in bond issuance and investment strategies in Asia.
Why it matters
What the papers say
According to the South China Morning Post, the HKMA's grant scheme is designed to encourage firms to adopt tokenisation, with Kenneth Hui stating that it aims to 'push the boundaries' of traditional finance. Meanwhile, The Japan Times reports that Rakuten's planned bond issuance comes as the company seeks to capitalize on favorable market conditions, having already raised $3.8 billion earlier this year. These contrasting focuses highlight the evolving landscape of bond markets in Asia, with Hong Kong pushing for technological advancements while Rakuten seeks to optimize its capital structure.
How we got here
Hong Kong has been exploring tokenised bonds since early 2023, while Rakuten has been active in the dollar bond market, seeking to capitalize on favorable conditions for high-yield debt.
More on these topics
-
Hong Kong, officially the Hong Kong Special Administrative Region of the People's Republic of China, is a metropolitan area and special administrative region of the People's Republic of China on the eastern Pearl River Delta of the South China Sea.