Hungarian economy minister opens London Stock Exchange to mark listing of yuan bond

Budapest, May 12 (MTI) – Economy Minister Mihály Varga ceremoniously opened the market on the London Stock Exchange on Thursday, marking the listing of a RMB 1 billion yuan bond Hungary recently issued.

The issue of the bond has “symbolic significance”, as it is not very big, but sends the important message that China must be reckoned with in the long term, too, Varga told MTI after the ceremony.

Hungary issued the three-year dim sum bond in mid-April.

Varga said that, unlike earlier, Hungarian bonds are attracting investors who plan to hold on to the securities for the long term. Especially favourable is the fact that among the institutional investors are pension funds, he added.

Varga said investors in continental Europe and the UK had subscribed the yuan bond.

Asked whether Hungary planned to issue a yuan bond targeted at investors on the Chinese market, Varga said that the Bank of China, its partner in the dim sum issue, had recommended a possible panda bond issue. The general opinion is that panda bonds promise lower yields and would be a cheaper market for Hungary to tap, he added.