Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)
2016 Asian Development Bank
6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines
Tel +63 2 632 4444; Fax +63 2 636 2444
Some rights reserved. Published in 2016.
Printed in the Philippines.
ISBN 978-92-9257-643-1 (Print), 978-92-9257-644-8 (e-ISBN)
Publication Stock No. RPT168513-2
Asian Development Bank.
ASEAN+3 bond market guide 2016 Hong Kong, China.
Mandaluyong City, Philippines: Asian Development Bank, 2016.
1. Regional cooperation. 2. Regional integration. 3. ASEAN+3. 4. Bond market.
I. Asian Development Bank.
The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian
Development Bank (ADB) or its Board of Governors or the governments they represent.
ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of
their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended
by ADB in preference to others of a similar nature that are not mentioned.
By making any designation of or reference to a particular territory or geographic area, or by using the term country in this
document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.
This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)
https://creativecommons.org/licenses/by/3.0/igo/ By using the content of this publication, you agree to be bound by the terms of this
This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source,
please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any
claims that arise as a result of your use of the material.
AttributionYou should always acknowledge ADB as the source using the following format:
[Author]. [Year of publication]. [Title of the work in italics]. [City of publication]: [Publisher]. ADB.
[URL or DOI] [license].
TranslationsAny translations you create should carry the following disclaimer:
Originally published by ADB in English under the title [title in italics]. ADB. [URL or DOI] [license].
The quality of the translation and its coherence with the original text is the sole responsibility of the translator. The English original of
this work is the only official version.
AdaptationsAny adaptations you create should carry the following disclaimer:
This is an adaptation of an original work titled [title in italics]. ADB. [URL or DOI][license]. The views expressed here are those
of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they
represent. ADB does not endorse this work or guarantee the accuracy of the data included in this publication and accepts no
responsibility for any consequence of their use.
Please contact email@example.com if you have questions or comments with respect to content, or if you wish to obtain
copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo.
Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda
ADB recognizes China as the Peoples Republic of China; Hong Kong as Hong Kong, China; and Korea as the Republic of
S. Bankruptcy Procedures 61 T. Event of Default and Cross-Default 62
IV. Bond and Note Transactions and Trading Market Infrastructure 64 A. Trading of Bonds and Notes 64 B. Trading Platforms 64 C. Mandatory Trade Reporting 65 D. Market Monitoring and Surveillance in the Secondary Market 66 E. Bond Information Services 66 F. Yields, Yield Curves, and Bond Indices 68 G. Repo Market 71 H. Securities Borrowing and Lending 74 I. Interest Rate and Fixed-Income Futures 76
V. Description of the Securities Settlement System 77
VI. Bond Market Costs and Taxation 78 A. Costs Associated with Bond and Note Issuance 78 B. Ongoing Costs for Issuers of Corporate Bonds and Notes 79 C. Costs for Deposit and Withdrawal of Bonds and Notes 80 D. Costs for Account Maintenance at the Central Moneymarkets Unit and Central Clearing and Settlement System 80 E. Costs Associated with Bonds and Notes Trading 81 F. Costs for Settlement and Transfer of Bonds and Notes 82 G. Taxation Framework and Requirements 83
VII. Market Size and Statistics 86
VIII. Presence of an Islamic Bond Market 88 A. Current Status of the Islamic Bond Market in Hong Kong, China 88 B. The Nature of Sukuk 88 C. Legal Implications for Investors 88 D. Sukuk Issuance in Hong Kong, China 89 E. Regulations for Sukuk 89 F. Basic Market Infrastructure Required to Facilitate Islamic Finance 89 G. Tax-Related Issues for Islamic Finance in Hong Kong, China 90
IX. Hong Kong Bond Market Challenges and Opportunities 91 A. Challenges in the Hong Kong Bond Market 91 B. Opportunities in the Hong Kong Bond Market 92
X. Recent Developments and Future Direction 94 A. Recent Major Developments 94 B. Future Direction 95
Appendixes 1 Group of Thirty Compliance 98 2 Practical References 100 3 Glossary of Technical Terms 101