An official at HSBC noted that the company is aiming to access the international market because it is continuing to expand. "HKMC is looking to buy more mortgages later this year and it is reaching a size now where it wants to reach the international market as well as the domestic," said the official. "HKMC is to Hong Kong what Fannie Mae is to the US, although with a few differences, most notably its size. It is involved in a market that will continue to grow."
HKMC has been extremely active in the domestic Hong Kong dollar bond market, and arranged a large Hong Kong dollar bond issue today (Wednesday) - a HK$5bn five year issue, which carries a 5.86% coupon priced at par.
Yesterday (Tuesday), Li said that HKMC was intending to arrange HK$2bn of conventional mortgage backed Hong Kong dollar bond issues, the first time that it would do so since it was set up by the Hong Kong government in 1997. The government body did arrange two MBS deals last year but these were passthrough, back-to-back issues, which the banks that arranged the issue bought straight from HKMC. The new issues will aim to reach a wide base of investors.