The overriding objective of the Government Bond Programme (GB Programme) is to promote the further and sustainable development of the local bond market in Hong Kong through systematic issuance of government bonds.
The GB Programme intends to promote the development of the local bond market in the following ways:
- to ensure a steady and consistent supply of public-debt paper;
- to satisfy the demand of institutional investors such as pension funds and insurance companies for investments to match their long-term Hong Kong dollar liabilities;
- to meet retail demand for stable investments;
- to improve liquidity in the secondary market for bond trading through more sizeable bond issues under the GB Programme;
- to broaden the investor base of Hong Kong dollar bonds; and
- to help the local bond market grow into a critical mass recognised by global benchmark indices, thereby attracting foreign investors into the Hong Kong bond market.
The development of a mature local bond market can readily serve as another channel for financial intermediation, complementing the equity market and the banking system. The diversity of financial intermediation channels helps promote financial stability and strengthen Hong Kong’s position as an international financial centre, thereby promoting economic development.