Core Insights - Cathay Securities' Hong Kong subsidiary successfully priced and issued a 7-year zero-coupon exchangeable bond totaling HKD 38.8 billion (approximately USD 5 billion), marking a significant achievement in the offshore bond market for Chinese firms [1][2] - The issuance set two key records in the offshore public zero-coupon bond market for Chinese firms in nearly 20 years: the highest issuance price at 103.5% and the maximum annualized negative yield at -0.49% [1][2] - The bond's design, with a 0% coupon rate, significantly optimizes financing costs amid high global dollar financing rates, reflecting strong investor confidence in Cathay Securities and its underlying stock [1][2] Company and Industry Summary - This issuance is the first offshore public exchangeable bond in nearly 20 years for the Chinese brokerage sector, representing a milestone for Cathay Securities in utilizing innovative financial instruments [2] - The bond issuance follows Cathay Securities' recent BBB+ long-term credit rating from S&P, marking its first public appearance in the international capital market [2] - The issuance attracted significant interest from long-term funds and hedge funds across the Asia-Pacific and European-American regions, indicating strong international investor demand for quality Chinese financial assets [2]