Hong Kong city skyline. Stock image.
Hong Kong plans to expand its dim sum or yuan bond market and develop yuan-denominated gold and commodity markets to help China strengthen its international pricing power, finance secretary Paul Chan said in a blog post on Sunday.
The comments came after Hong Kong unveiled its first five-year plan. Chan said the city has a unique role to play in advancing China’s goal of becoming a strong financial power.
In outlining the plan, Hong Kong Chief Executive John Lee said the territory would launch a central clearing and settlement system for gold in 2027.
Sales of “dim sum” or yuan bonds reached record highs of around 350 billion yuan ($52.3 billion) in the first half of this year, rising more than 60% from the same period last year. International borrowers accounted for half of the total, according to Goldman Sachs.
Meanwhile, offshore yuan loans in Hong Kong reached a record 935 billion yuan last year, Chan said in the blog post.
($1 = 6.6975 Chinese yuan renminbi)
(Reporting by Colleen Howe and Jing Xu; editing by Lincoln Feast.)