On May 28, the Ministry of Finance of the People's Republic of China, representing the central government, successfully issued its inaugural 6 billion yuan green sovereign bond in the Hong Kong Special Administrative Region.
CBHB (09668), as a domestic financial institution actively participating, successfully subscribed to the bond through the Southbound Bond Connect channel and completed the settlement and value date on June 4.
This marks the bank's first investment in an offshore RMB green sovereign bond issued by the Ministry of Finance and represents another significant practice in its cross-border financial business serving national strategies.
The green sovereign bond issuance comprised 3 billion yuan with a 3-year tenor and 3 billion yuan with a 5-year tenor, carrying coupon rates of 1.42% and 1.56% respectively, which garnered high recognition from the international market.
The 3-year tranche achieved a subscription multiple of 9.8 times, while the 5-year tranche reached 11.0 times, attracting a diverse and broad range of investors.
This bond possesses the dual attributes of a green bond and an offshore RMB bond (dim sum bond), signifying a milestone for promoting RMB internationalization and global sustainable finance development as the central government's first green sovereign bond issuance in Hong Kong.
Key Steps in the Subscription Process
CBHB attached great importance to this issuance and responded promptly upon receiving relevant information.
The bank participated in the online roadshow organized by the Ministry of Finance on May 27, completed a total subscription of 200 million yuan and successfully secured an allocation through the lead underwriters on May 28, initiated a buy quote via the Southbound Bond Connect front-end system of the China Foreign Exchange Trade System on June 1, and finalized the settlement and value date on June 4.
The entire process was standardized and efficient, demonstrating the bank's robust operational capabilities in cross-border finance.
Steady Expansion of Southbound Business
Since executing its first Southbound Bond Connect transaction in December 2022, CBHB has consistently implemented the policy requirements set by the People's Bank of China regarding bond market connectivity and cross-border RMB business, continuously improving its operational mechanisms and expanding service scope.
As of the end of May 2026, the bank's Southbound Bond Connect transaction volume had increased by approximately 170% year-on-year, covering various bond types including sovereign government bonds, financial institution bonds, and non-financial corporate bonds, thereby enriching the scenarios for cross-border RMB use.
The successful subscription to the Ministry of Finance's inaugural offshore RMB green sovereign bond represents a significant breakthrough for CBHB's Southbound Bond Connect business in the sovereign bond sector.
Through this channel, the bank actively participates in the offshore RMB financial market, making a positive contribution to promoting connectivity between onshore and offshore bond markets and advancing RMB internationalization.
Commitment to Green Finance Principles
Over the years, CBHB has earnestly implemented the directives of the Central Financial Work Conference, adhering to the fundamental orientation of serving the nation through finance and supporting the real economy, and diligently advancing the "Five Key Areas of Finance."
Regarding green finance, the bank has continuously enhanced its green finance system, increased investment in green assets such as green bonds, and extended its green finance initiatives from domestic to international markets.
From January to May 2026, the bank's green bond investment scale grew by approximately 10% year-on-year.
Participation in this offshore green sovereign bond investment is a crucial move by CBHB to practice green finance and support the national "dual carbon" strategy and sustainable development.
Concurrently, the bank has continued to optimize financial resource allocation, steadily improved operational quality and efficiency, achieved steady growth in operating revenue and net profit, and contributed to high-quality economic and social development through high-quality financial services.
Future Strategic Direction
Moving forward, CBHB will continue to thoroughly implement the policy decisions of the Party Central Committee and the State Council, closely focus on serving major national strategies, deepen innovation in cross-border financial business, steadily advance key operations such as Southbound Bond Connect and thematic bonds related to the "Five Key Areas of Finance," and continuously enhance service capabilities in cross-border RMB transactions and settlement to actively support RMB internationalization.
Furthermore, the bank will actively participate in the development of the global sustainable finance market, effectively improve the quality and efficiency of serving the real economy, and contribute greater financial strength to promoting a comprehensive green transformation of economic and social development and building a modern economic system.
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