Chief Executive John Lee Ka-chiu met on Sunday with Chairman of the China Securities Regulatory Commission Wu Qing and exchanged views on deepening the mutual access between the Hong Kong Special Administrative Region and Chinese mainland financial markets.
Lee met Wu at Government House and said that Hong Kong enjoys the unique advantages of having the strong support of the motherland and being closely connected to the world under the “one country, two systems” principle, while possessing a highly internationalized market environment and mature financial infrastructure.
Lee said the National 15th Five-Year Plan supports Hong Kong in enhancing its status as an international financial center, strengthening its functions as a global offshore renminbi (RMB) business hub, an international asset and wealth management center, and an international risk management hub.
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He added that the HKSAR government is pressing ahead at full speed with the preparation of Hong Kong’s first five-year plan to proactively seize the opportunities brought by the development of the country and support the high-level opening up of the mainland’s financial markets.
The global demand for RMB in trade finance, investment and reserves is steadily rising, Lee said, adding that Hong Kong, with the world’s largest offshore pool of RMB funds, has been actively upgrading its financial infrastructure, product innovation and market expansion in various key areas.
Lee said he was pleased to note that the launch of mainland government bond futures in the HKSAR on Monday provides an effective offshore risk management tool for investors, and helps attract international investors to participate in the mainland bond market and hold RMB treasury bonds on a long-term basis.
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This is a key step in enhancing the RMB product ecosystem, and further consolidates Hong Kong’s status as the world’s offshore RMB business hub, he added.
Lee also thanked the central government and relevant mainland regulators for their continued support, adding that he looked forward to further deepening cooperation and enhancing the liquidity of offshore RMB to facilitate the solid advance of the RMB’s internationalization.
The Hong Kong SAR will continue to expand the mutual access between Hong Kong and mainland financial markets, building on the existing foundations of Stock Connect, Bond Connect and Cross-boundary Wealth Management Connect, Lee added.
Financial Secretary Paul Chan Mo-po; Acting Secretary for Financial Services and the Treasury Joseph Chan Ho-lim; Chairman of the Securities and Futures Commission of Hong Kong Kelvin Wong Tin-yau; and Chief Executive Officer of the SFC Julia Leung Fung-yee also attended the meeting.