"Hong Kong 01" will host the Economic Summit Forum 2021, bringing together leaders in the political, business, and academic circles across the Taiwan Straits and four lands to find the way for Hong Kong, which is at the center of change, and seek the development of a new situation.
Yu Weiwen, President of the Hong Kong Monetary Authority, said when attending the "Hong Kong 01 Economic Summit 2021" that Hong Kong is in the "14th Five-Year Plan" and dual cycles. Hong Kong must seize three financial development opportunities. To promote the internationalization of the renminbi, the third is to develop financial technology and green finance.
Yu Weiwen believes that Hong Kong must seize three financial development opportunities. First, Hong Kong must give full play to its traditional advantages and serve as a bridge between the mainland market and foreign investors. Continue to expand and deepen, such as improving the process of cross-border financing and expanding the types of Bond Connect products.” He also pointed out that A-share futures have been launched, and future interest rate risk management can be considered whether they can be launched.
The second is to strive for the internationalization of the renminbi in Hong Kong. He pointed out that China is the world’s second largest economy and the world’s largest trading nation, but the renminbi only accounts for 2% of international trade payments and central bank reserves, and the U.S. dollar is still dominant. The internationalization of the renminbi still has a long way to go.
Hong Kong is the largest offshore renminbi fund pool, accounting for 70% of the renminbi payment transaction volume. How to expand the category of renminbi products in the next few years, such as Hong Kong stocks trading in renminbi, etc.
Third, in addition to interconnection, we must also focus on and strive to lead in the financial field, and promote financial technology and green finance.
China has dual carbon targets for 2030 and 2060, and Hong Kong wants to bring international funds into domestic financing.
"The green bond market has developed rapidly. The issuance of US$12 billion last year has doubled this year. The amount of issuance in the first half of the year has exceeded this level, and 60% of these are issued by mainland issuers." The Shenzhen Municipal People’s Government issued 50% in Hong Kong in October. RMB 100 million offshore RMB bonds (Dim Sum bonds), some of which are “green bonds”.
Yu hopes that Shenzhen can play a leading role in attracting other provincial and municipal governments and enterprises to issue green bonds in Hong Kong.
Hong Kong 01 Economic Summit Forum 2021.
There is no benefit to decoupling between China and the United States. Hong Kong is a good "firewall"
Yu Weiwen bluntly said that the reason why Hong Kong became an offshore RMB center occurred in 2004. At that time, the Monetary Authority actively sought the People’s Bank of China to open a RMB account outside of China. Policy orientation in the Mainland.
He pointed out that the internationalization of the renminbi involves the opening of China’s capital account, and there are always risks. “We found that the U.S. dollar is unreasonably high in the international use ratio. The current international use of the renminbi is not in line with national strength. Hong Kong is a good firewall, and It is the most ideal place to reduce the risk of opening up the capital account."
Asked that the US Securities Regulatory Commission (SEC) passed an amendment to determine the implementation of the "Foreign Company Accountability Act (HFCAA)" passed in 2020. If foreign companies listed in the United States do not comply with the information disclosure requirements of the US regulators, they may Will be delisted.
Yu Weiwen pointed out that the China Securities Regulatory Commission has said that China and the United States have unintentionally decoupled because it is not good for everyone. Earlier, they worried about whether foreign investors will leave Hong Kong. However, observation shows that the inflow of funds into China-related assets is looking for high growth and global connections. There is no change in international funds for assets with lower sex.