Global financial markets' 30-fold oversubscription for the recent US dollar‑denominated sovereign bonds issued by China’s Ministry of Finance reinforced Hong Kong's role as an international financial hub, industry insiders said.

The Ministry of Finance, on behalf of the central government, issued $4 billion sovereign bonds in the Hong Kong Special Administrative Region on Wednesday. The offering comprised $2 billion in the three-year tranche with a yield of 3.65 percent, and $2 billion in the five-year tranche with a yield of 3.79 percent.

The offering was met with an enthusiastic market reception, attracting $118.2 billion in total subscriptions, about 30 times the issuance amount.

The investor base for the bonds was highly diversified and globally distributed, with investors from Asia, Europe, the Middle East and the United States accounting for 53 percent, 25 percent, 16 percent and 6 percent of the total, respectively.

The bonds will be listed on the Hong Kong Stock Exchange, according to the ministry.

China International Capital Corporation (CICC) is one of the bookrunners supporting the issuance of the sovereign bonds.

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Zhang Xing, head of fixed income at the company’s investment banking department, said demand from central banks and sovereign investors across the world was significantly stronger than in previous years, with many taking part in China’s sovereign bond issuance for the first time.

“The successful issuance of the ministry's US dollar-denominated sovereign bonds will lead market investors to pay greater attention to Chinese overseas assets,” Zhang added.

This move also marks the first time since 2021 that the ministry has issued US dollar-denominated sovereign bonds in Hong Kong.

David Liao, co-chief executive for Asia and the Middle East at HSBC said it signaled strong central government support for the region's development as an international financial center.

The move aims to expand the depth and breadth of Hong Kong's bond market, establish a more robust offshore yield curve, and provide a pricing benchmark for Chinese companies issuing US dollar bonds overseas.

This issuance will further enhance Hong Kong's position as a leading bond market in Asia, he added.