Asia Macro Strategy Notes: CCS monitor: A closer look at HKD bond issuance

Research evidence excerpt

Asia Macro Strategy Notes: CCS monitor: A closer look at HKD bond issuance

Deutsche Bank

Research

Asia Fixed Income Date

Australasia 15 May 2026

Japan Asia Macro Strategy

North America

Notes

CCS monitor: A closer look at HKD bond

issuance

Bryant Xu

We are adding HKD to our CCS/ASW/EMTN/Balance-Sheet Hedge monitors. The

Strategist

HKD CCS market has a relatively clear delineation of participants across the receive +65-6423 5558

and pay side. The main receivers are local bank treasury/ALM desks and

international HKD bond issuers. Local banks typically receive HKD CCS when they Jalaj Singh

Research Associate

swap HKD liquidity into USD for overseas investment, while international issuers

receive HKD CCS when they issue in the HKD bond market and swap the proceeds

back into their preferred currencies. The pay side flows are most often associated

with corporates hedging balance-sheet exposures. Insurance companies and

hedge funds are visible on both sides, depending on investment flows, hedging

needs and relative-value opportunities. (See our primer Introducing our Asia Cross

Currency Swap (CCS) Monitor for a detailed discussion of market participants

across Asia CCS markets.)

Over the past 12 months, receiving flows from local bank treasury/ALM desks and

international HKD bond issuers appear to have dominated the market.

A closer look at HKD bond issuance

HKD bond issuance has expanded sharply over the past few years. Full-year

issuance reached HKD899bn in 2025, roughly double the level compared with

2022, and the market has had another strong start to 2026, with YTD issuance up

75% yoy. Part of this boom likely reflects weak loan demand in Hong Kong, with the

loan-to-deposit ratio declining to 53% (vs 72% in 2022). As banks and investors look