Surge in Hong Kong dollar bonds to continue after record US$42 billion year

City’s deep, liquid market and low inflation attract issuers amid a structural shift away from the US dollar, analysts say

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A view of Central and Victoria Harbour on November 26, 2024. Photo: AFP

Published: 1:35pm, 28 Nov 2025

Hong Kong dollar bond issuance is poised to expand, following a record run of offerings, as easing local interest rates attract more issuers while a global diversification trend persists, according to analysts.

Total issuance in the city’s currency reached a record HK$331 billion (US$42.6 billion) so far this year, nearly 37 per cent higher than 2024’s full-year total of HK$242 billion.

“The Hong Kong dollar bond market will continue to grow over the long term, supported by structural shifts,” said Oliver Greer, global head of medium-term notes at Standard Chartered.

Amid a global shift to diversify away from the US dollar, the Hong Kong dollar emerged as a logical choice for Asian investors, supported by its long-standing US dollar peg and a deep, liquid market underpinned by a clear legal and capital framework, Greer said. The city’s low inflation also translated into higher real returns for bond investors, he added.

Many issuers were broadening their funding mix as US dollar rates remained elevated, said Terrence Pang, portfolio manager at Fidelity International.

“The Hong Kong dollar has offered more competitive all-in costs, particularly for borrowers with natural Hong Kong dollar needs or balance-sheet alignment,” he said.

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