| Abstract | New issues of Hong Kong dollar debt securities in 1999 declined. The Exchange Fund and multilateral development banks decreased their issuance of debt securities, but this was partly compensated by higher debt issuance by local authorised institutions and corporations, and by overseas borrowers. New corporate debt issuance surged, reflecting strong demand for high-quality corporate paper. The level of outstanding Hong Kong dollar debt continued to grow in 1999, but at a moderate pace. The increase in outstanding debt was in sharp contrast to the decline in bank lending, reflecting some apparent substitution of corporate debt securities for bank loans. Hong Kong corporations have made more use of international markets than of domestic market to raise funds. The amount of outstanding international bonds of Hong Kong corporations was much larger than the amount of outstanding debt in the domestic market. |
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