Chief Executive John Lee today met Chairman of the China Securities Regulatory Commission Wu Qing at Government House to discuss deepening the mutual access between Hong Kong and Mainland financial markets.
Welcoming Mr Wu and his delegation to Hong Kong, Mr Lee said that city enjoys the unique advantage of having the motherland’s strong support while being closely connected to the world under the “one country, two systems” principle, and possesses a highly internationalised market environment and mature financial infrastructure.
Mr Lee highlighted that the National 15th Five-Year Plan supports Hong Kong in consolidating and enhancing its status as an international financial centre, strengthening its functions as a global offshore renminbi (RMB) business hub, an international asset and wealth management centre, and an international risk management centre.
He outlined that the Hong Kong Special Administrative Region Government is pressing ahead with preparing Hong Kong’s own first Five-Year Plan, and is fully committed seizing the opportunities brought by national development, advancing the high-quality development of Hong Kong as an international financial centre, and supporting the high-level opening up of the Mainland’s financial markets.
Mr Lee said that global demand for RMB in trade finance, investment and reserves is steadily rising. Hong Kong, as a hub for global offshore RMB transactions and financial activities, has the world’s largest offshore pool of RMB funds, and has been upgrading its financial infrastructure, while innovating and expanding in various key areas.
Noting that Mainland government bond futures will be launched in Hong Kong tomorrow, Mr Lee said this provides an effective offshore risk management tool for investors, and also helps attract international investors to participate in the Mainland bond market and to hold RMB treasury bonds on a long-term basis.
Mr Lee emphasised that 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 thanked the Central People’s Government and relevant Mainland regulators for their continued support, and said that he looked forward to further deepening co-operation with the Mainland and enhancing the liquidity of offshore RMB to facilitate the prudent and solid advancement of the RMB’s internationalisation.
The Chief Executive said that the Hong Kong SAR Government will continue to work closely with Mainland regulators to jointly implement pragmatic measures to deepen co-operation between the two markets.
Hong Kong 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, to offer a wide range of investment and risk management products to the market.
Hong Kong and the Mainland will achieve complementary advantages and promote synergistic development and product innovation in the financial markets to contribute to the development of the country as a financial powerhouse, he added.
Financial Secretary Paul Chan, Acting Secretary for Financial Services & the Treasury Joseph Chan, Hong Kong Securities & Futures Commission (SFC) Chairman Kelvin Wong and the SFC Chief Executive Officer Julia Leung also attended the meeting.
