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While the Hong Kong dollar debt market is still small compared with the banking sector and the stock market, it has developed into an important avenue for raising funds in recent years.

In 1995, $59.9 billion was raised through private sector debt issues, and the outstanding amount of exchange fund bills and notes increased by $6.4 billion (Annex B).

By comparison, the increase in outstanding Hong Kong dollar loans by authorised institutions was $115 billion in the first 11 months of 1995. Funds raised in the local stock market through initial public offerings amounted to $7.6 billion last

year.

On a regional comparison, the outstanding amount of private sector paper issued in Hong Kong has exceeded that of many debt markets in the region (Annex C).

Chief Executive of HKMA, Mr Joseph Yam, said: "The results show that the private sector Hong Kong dollar debt market is one of the most liquid in Asia.

"With greater regional co-operation, the potential for the Asian bond markets is tremendous."

The Survey on the Hong Kong dollar debt market was conducted in the second half of 1995 by HKMA with the co-operation of the Hong Kong Capital Markets Association.

Together with information gathered from the Central Moneymarkets Unit Service of HKMA and commercial sources, a more comprehensive frame of outstanding Hong Kong dollar debt issues has been established.

As from August 1995, information on new issue activities is also reported to HKMA.

Starting with the December 1995 figures, statistics on the outstanding amount and issue activity of Hong Kong dollar debt instruments will be published at quarterly interval in the HKMA monthly statistical bulletin.