HAIKOU, July 8. /TASS/. The representative office of the Bank of Communications of China (BOCOM) in the southern Chinese province of Hainan, with the support of China's State Administration of Foreign Exchange, registered the issue of offshore debt obligations in the amount of € 38 million to revive the real sector of the island's economy, reported the Hainan Daily.

According to the newspaper, the bonds are owned by a Hainan-based pharmaceutical company that will be able to list them on exchanges both in China and abroad. This commercial entity is said to have a track record of diversifying funding sources and capable of controlling foreign exchange risks.

According to the calculations of the bank's specialists, the offshore allowed the company to reduce costs by about 3% compared to the traditional channels for increasing capitalization by issuing securities. BOCOM has registered the issue according to a simplified model, which significantly reduces the time required to complete the procedures.

In this case, an offshore is a segment in the structure of the national economy that has a relatively independent status and allows banks to provide a special package of services to both residents and non-residents. Offshore bonds issued by China on Hainan are debt obligations in foreign currency that, thanks to the advantages of the free trade port, can reduce the costs of providing enterprises with cash. A developed financial cluster is gradually being created on the island, which is expected to become an important stimulus for the long-term development of the entire Chinese economy.