In this undated file photo, pedestrians pass the headquarters of the People's Bank of China in Beijing. (KUANG DA / FOR CHINA DAILY)
China's central bank will continue to support the Hong Kong Special Administration Region's development as an international financial center, mainly through optimizing the financial market connect mechanism between the Chinese mainland and the SAR, as well as developing RMB-denominated financial products and tools, the central bank governor said on Thursday.
The Hong Kong SAR can play a role in connecting the mainland and international financial markets, and authorities will further improve the connect programs which channel funds between the mainland and the SAR to better satisfy investor needs, Yi Gang, governor of the People's Bank of China, told a virtual seminar.
The PBOC governor also mentioned that RMB-denominated financial products would be expanded and risk management tools improved in Hong Kong as a means to promote the internationalization of the RMB
Multiple efforts will help to strengthen Hong Kong's status as an international financial center, Yi said.
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Hong Kong is expected to provide stronger support in financing involved in the Belt and Road Initiative. As an important gateway for mainland enterprises' "going out" development, Hong Kong can support mainland enterprises as well as attract global investors to join BRI construction through improving financial services, Yi added.
The seminar, "Hong Kong's Position and Prospect as an International Financial Center", was jointly held by the PBOC and the Hong Kong Monetary Authority in Beijing on Thursday.
The PBOC governor also mentioned that RMB-denominated financial products would be expanded and risk management tools improved in Hong Kong as a means to promote the internationalization of the RMB.
Other efforts to strengthen Hong Kong's position as an international financial center include the cooperation of the central bank digital currency, regulatory technology and green finance between the PBOC and the HKMA, Yi said.
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Talking about the recent fluctuations in the US dollar bond market, Yi added that the short-term risk exposure of some individual real estate companies, such as the Evergrande Group as he mentioned, will not influence the financing functions of the market in the medium-to-long term.
As a mature international financial center, Hong Kong has established a complete and efficient financial system, which also has clear laws, rules and procedures to deal with relevant issues, Yi said.
The PBOC will continually build a level playing field and urge relevant enterprises and shareholders to deal with debt issues in accordance with laws and market rules, fully respecting the rights and interests of creditors and shareholders following the legal order of debt redemption, Yi added.
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