According to a video provided by G-Translators of the New Federal State of China, on October 24, the Hong Kong Monetary Authority announced that the People’s Government of Hainan Province would issue offshore bonds of up to RMB 5 billion in Hong Kong, and the Shenzhen Municipal Government would also issue offshore bonds of the same amount.
The CCP’s Ministry of Finance, the Central Bank, and Hong Kong’s senior officials have all expressed high-profile support and claimed that this reflects strong support for Hong Kong’s consolidation as a global hub for offshore RMB business, and will help strengthen Hong Kong’s position as a sustainable financial center.
But experts see this as nothing more than an rogue attempt by the financially-strapped CCP’s local government to scam overseas funds in Hong Kong in order to service its internal debts. According to data released by the Ministry of Finance, the overall fiscal deficit of the CCP has reached over 7 trillion yuan in the first nine months of 2022, almost three times that of last year. The fiscal deficit of Hainan Province in the first seven months increased by 30% year-on-year. It remains unclear whether the CCP will be able to achieve its goals as Hong Kong’s financial status and financial capability under CCP rule has declined sharply.