Finance is the lifeblood of economic operations and a key cornerstone of national core competitiveness, Secretary for Financial Services and the Treasury, Christopher Hui, stated at a Legislative Council meeting. The "15th Five-Year Plan" adopted at this year's Two Meetings explicitly proposed for the first time to accelerate the building of a strong financial nation and identified accelerating the establishment of a modern financial system with Chinese characteristics as the key pathway to achieving this goal.

With strong support from the Central Government, Hong Kong has consistently maintained its core position as the global hub for offshore RMB business. According to data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Hong Kong currently handles approximately 75% of global offshore RMB payment transactions, demonstrating its irreplaceable market share and international influence. As of end-February this year, Hong Kong's RMB deposits (including certificates of deposit) approximated RMB1.2 trillion, representing the world's largest offshore RMB liquidity pool.

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The Hong Kong Government will focus on four major directions - enhancing Hong Kong's financial infrastructure, increasing offshore RMB liquidity, enriching RMB-denominated products, and developing emerging markets to comprehensively advance RMB internationalization.

In terms of enhancing financial infrastructure, since the launch of Bond Connect's "Northbound" and "Southbound" schemes in 2017 and 2021 respectively, they have not only deepened connectivity between the Mainland and international markets, but also reinforced Hong Kong's central role in global offshore RMB clearing, financing and asset management.

Regarding increasing offshore RMB liquidity, an ample liquidity pool forms the foundation for all business development. The Hong Kong Monetary Authority's RMB Liquidity Facility has doubled its total quota to RMB200 billion in February this year, providing banks with stable and relatively low-cost RMB funding. This supports banks in offering RMB financing to corporate clients in Hong Kong and overseas for trade finance, daily operations and capital expenditure, thereby extending offshore RMB usage globally and supporting broader adoption of RMB in the real economy.

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In enriching RMB products, the Government is actively encouraging Mainland authorities at various levels, as well as onshore and offshore public and private institutions, to issue offshore RMB bonds in Hong Kong.

In developing emerging markets, the Government is also proactively expanding into the Middle East and Belt and Road markets. It will strengthen promotional efforts through overseas visits, seminars and roadshows to actively promote the advantages of Hong Kong's offshore RMB services to international markets. (su/j)

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