| Abstract | Despite rapid growth over the past decade, the Hong Kong dollar bond market is still relative small with thin trading. The lack of treasury papers and the inherent demand for United States (US) dollar funds from local corporation for their international transactions are factors hindering its growth. The openness of the Hong Kong economy and the availability of a stable pool of foreign currency deposits are favourable for developing US dollar bond trading in Hong Kong, which will be leveraged by the launch of an efficient US dollar clearing system later in 2000. The development of Hong Kong into an active Eurodollar currency and bond trading and clearing centre requires the deepening of market liquidity and attracting international players to use the financial infrastructure in Hong Kong. |
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