IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2016-04-49.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/irmm/article/download/3348/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/irmm/article/view/3348/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Bhuiyan, Rubaiyat Ahsan & Rahman, Maya Puspa & Saiti, Buerhan & Ghani, Gairuzazmi Bin Mat, 2019. "Does the Malaysian Sovereign sukuk market offer portfolio diversification opportunities for global fixed-income investors? Evidence from wavelet coherence and multivariate-GARCH analyses," The North American Journal of Economics and Finance, Elsevier, vol. 47(C), pages 675-687.
    3. Buerhan Saiti & Mansur Masih, 2016. "The Co-movement of Selective Conventional and Islamic Stock Indices: Is there any Impact on Shariah Compliant Equity Investment in China?," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1895-1905.
    4. Ftiti, Zied & Hadhri, Sinda, 2019. "Can economic policy uncertainty, oil prices, and investor sentiment predict Islamic stock returns? A multi-scale perspective," Pacific-Basin Finance Journal, Elsevier, vol. 53(C), pages 40-55.
    5. Ali, Hakim & Masih, Mansur, 2016. "Evidence of cross-country portfolio diversification benefits: The case of Saudi Arabia," MPRA Paper 72180, University Library of Munich, Germany.
    6. Raza, Naveed & Ibrahimy, Ahmad & Ali, Azwadi, 2015. "Gold and Islamic Stocks: A Hedge and Safe Haven Comparison in Time - Grequency domain for BRICS," MPRA Paper 69366, University Library of Munich, Germany.
    7. Hosen, Mosharrof & Masih, Mansur, 2017. "Are Islamic risk factors blessings or curse for stock return? evidence from Malaysia based on dynamic GMM and quantile regression approaches," MPRA Paper 79738, University Library of Munich, Germany.
    8. Delle Foglie, Andrea & Panetta, Ida Claudia, 2020. "Islamic stock market versus conventional: Are islamic investing a ‘Safe Haven’ for investors? A systematic literature review," Pacific-Basin Finance Journal, Elsevier, vol. 64(C).
    9. Naveed Raza & Ahmad Ibn Ibrahimy & Azwadi Ali & Sajid Ali, 2016. "Gold and Islamic stocks: A hedge and safe haven comparison in time frequency domain for BRICS markets," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(6), pages 305-318, Special I.
    10. Camgöz, Mevlüt & Topal, Mehmet Hanefi, 2022. "Identifying the asymmetric price dynamics of Islamic equities: Implications for international investors," Research in International Business and Finance, Elsevier, vol. 60(C).
    11. Pirgaip, Burak & Arslan-Ayaydin, Özgür & Karan, Mehmet Baha, 2021. "Do Sukuk provide diversification benefits to conventional bond investors? Evidence from Turkey," Global Finance Journal, Elsevier, vol. 50(C).
    12. Firouzi, Shahrokh & Wang, Xiangning, 2019. "A comparative study of exchange rates and order flow based on wavelet transform coherence and cross wavelet transform," Economic Modelling, Elsevier, vol. 82(C), pages 42-56.
    13. Saba Qureshi & Muhammad Aftab, 2023. "Exchange Rate Interdependence in ASEAN Markets: A Wavelet Analysis," Global Business Review, International Management Institute, vol. 24(6), pages 1180-1204, December.
    14. Belkhir, Mohamed & Grira, Jocelyn & Hassan, M. Kabir & Soumaré, Issouf, 2019. "Islamic banks and political risk: International evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 74(C), pages 39-55.
    15. Yousaf, Imran & Beljid, Makram & Chaibi, Anis & Ajlouni, Ahmed AL, 2022. "Do volatility spillover and hedging among GCC stock markets and global factors vary from normal to turbulent periods? Evidence from the global financial crisis and Covid-19 pandemic crisis," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
    16. Alexakis, Christos & Pappas, Vasileios & Tsikouras, Alexandros, 2017. "Hidden cointegration reveals hidden values in Islamic investments," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 46(C), pages 70-83.
    17. Mohamad, Nurul Muna & Masron, tajul & Widiyanti, Risna & Mohd Jamil, Muslimah, 2020. "Islamic Banking and Income Inequality: The Role of Corporate Social Responsibility," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 77-90.
    18. Suwanhirunkul, Prachaya & Masih, Mansur, 2018. "Effect of dividend policy on stock price volatility in the Dow Jones U.S. index and the Dow Jones islamic U.S. index: evidences from GMM and quantile regression," MPRA Paper 93543, University Library of Munich, Germany.
    19. Abdullahi , Shafiu Ibrahim, 2021. "Islamic equities and COVID-19 pandemic: measuring Islamic stock indices correlation and volatility in period of crisis," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 29, pages 50-66.
    20. Rahman, Matiur, 2019. "Islamic banks with mutuality and neutrality: A balance-sheet-based theoretical framework," The Quarterly Review of Economics and Finance, Elsevier, vol. 74(C), pages 3-8.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ3:2016-04-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.