Recently, the Hong Kong SAR government issued 5 billion yuan of offshore RMB green bonds, and investors responded warmly. The two issues of RMB bonds attracted a total subscription amount of more than 14.2 billion yuan. This is the first time that the SAR government has issued RMB bonds. Although the amount is small, it is of great significance. Different from the shrinking scale of RMB bond issuance in Hong Kong in previous years, the issuance of offshore RMB bonds commonly known as "dim sum bonds" has rebounded significantly since last year. In 2021, the issuance of RMB bonds in Hong Kong continued to maintain a certain growth. The Ministry of finance will issue 20 billion yuan of treasury bonds in three phases in Hong Kong. Local governments also made new breakthroughs in issuing RMB bonds in Hong Kong: on October 11, the Shenzhen Municipal Government approved to issue RMB 5 billion bonds in Hong Kong, and the market response was also very enthusiastic. Hong Kong financial circles believe that the issuance of offshore RMB local government bonds is of great benefit to continuously explore the breadth and depth of overseas capital market and further enrich the issuance varieties of overseas RMB bonds. Hong Kong has always been the largest offshore RMB market. In the process of RMB internationalization, it is very important to expand the scale of RMB bonds so as to increase the attraction of RMB to international investors. However, after 2015, affected by factors such as the decline of onshore financing costs and the downward expectation of RMB exchange rate, the RMB bond market in Hong Kong continued to shrink, falling from the issuance peak of RMB 254.2 billion in 2014 to RMB 49.4 billion in 2019. The sea is full of heroes. Since 2020, offshore RMB has shown unique stability under extreme risk events. In January 2020, the offshore RMB exchange rate appreciated by about 0.5% to 6.9984 compared with the end of 2019. Subsequently, the epidemic became the main line driving the exchange rate. Although the offshore RMB exchange rate began to depreciate under pressure, in the second half of the year, the offshore RMB accelerated its appreciation against the US dollar and a basket of currencies, continued to maintain a highly negative correlation with the US dollar index, and was evaluated by Hong Kong financial institutions as "reflecting the essence of China entering the fundamental repair period faster than other economies". Under the background of high global economic uncertainty caused by the epidemic, the resilience of China's economy and the stability of RMB exchange rate are favored by international investors. The role of RMB bonds as global hedging assets is gradually emerging. RMB bond assets, sovereign credit or quasi sovereign credit assets are sought after by international investors. Looking forward to the future, the offshore RMB exchange rate still faces complex and severe external risks, but in the short term, the offshore RMB exchange rate still has some room for appreciation. The interconnection and southbound cooperation between the mainland and Hong Kong Bond Markets (hereinafter referred to as "southbound") opened on September 24 has also added new vitality to the Hong Kong RMB bond market. Hong Kong's financial circles greatly welcome the "southbound" and believe that the "southbound" connects domestic investors with the vast overseas bond market. It is an important measure for the central government to support Hong Kong's development and promote cooperation between the mainland and Hong Kong. It also shows the central government's determination to maintain Hong Kong's status as an international financial center. All these will promote the development of Hong Kong's RMB bond market and boost the process of RMB internationalization. (outlook new era)