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Sukuk Issuance in China: Trends and Positive Expectations

Author

Listed:
  • Ding Bo

    (Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia,)

  • Engku Rabiah Adawiah Engku Ali

    (Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia,)

  • Buerhan Saiti

    (Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia.)

Abstract

The paper assesses the potential and importance of Sukuk issuance in China. The research proposes that Sukuk can be used as an alternative financing instrument to materialize the “One Belt One road (OBOR)” strategy. Hong Kong as a gateway of China had launched two Sukuks in 2014 and 2015 respectively. This paper analyzes the two sovereign Sukuk issuances out of Hong Kong in the last 3 years. Meanwhile, by conducting un-structured interviews of the potential issuers and related scholars, it is found that Sukuk issuance in China will face some challenges such as policies and regulations of Sukuk, tax and stamp duty issues, investors’ protection, establishing of Shariah Supervisory Committee, etc. However “OBOR” initiative provides the best opportunity for Sukuk to move forward in China.

Suggested Citation

  • Ding Bo & Engku Rabiah Adawiah Engku Ali & Buerhan Saiti, 2016. "Sukuk Issuance in China: Trends and Positive Expectations," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 1020-1025.
    • Handle: RePEc:eco:journ3:2016-04-49
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    References listed on IDEAS

    as
    1. Buerhan Saiti & Obiyathulla I. Bacha & Mansur Masih, 2014. "The diversification benefits from Islamic investment during the financial turmoil: The case for the US-based equity investors," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 14(4), pages 196-211, December.
    2. Buerhan Saiti & Obiyathulla Ismath Bacha & Mansur Masih, 2016. "Testing the Conventional and Islamic Financial Market Contagion: Evidence from Wavelet Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(8), pages 1832-1849, August.
    3. Patrick Imam & Kangni Kpodar, 2013. "Islamic Banking: How Has It Expanded?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(6), pages 112-137, November.
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    Cited by:

    1. Intekhab Alam & Pouya Seifzadeh, 2020. "Marketing Islamic Financial Services: A Review, Critique, and Agenda for Future Research," JRFM, MDPI, vol. 13(1), pages 1-19, January.

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    More about this item

    Keywords

    Sukuk; Islamic Finance; One Belt One Road; Hong Kong; China;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects
    • Z33 - Other Special Topics - - Tourism Economics - - - Marketing and Finance

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