On the 25th anniversary of Hong Kong’s return to the motherland, the financial system has undergone many challenges in the past 25 years. In recent years, it has faced the Sino-US trade war. Ren Zhigang, former president of the HKMA and member of the Executive Council, said on the radio today (3rd) that he believes that there is a financial war between China and the United States. The chances are not very big. If the two countries cannot conduct direct transactions, the role of Hong Kong will become more and more important.
Regarding the promotion of RMB internationalization, he criticized Hong Kong for "doing too slowly" and "doing too little", emphasizing that Hong Kong needs to reduce its reliance on the US dollar in the long run. Therefore, it is necessary to accelerate the promotion of RMB internationalization. RMB can be used as a transaction unit and a store of wealth in the balance of payments.
Vested interests keep China and the US from completely decoupling
Ren Zhigang said on the commercial TV program "Government Good Sunday" that from a rational analysis, he believes that there is little chance of a financial war between China and the United States. He explained that the United States intends to contain China and needs to use financial weapons, but if the capital flow is restricted, it will make the international Questioning that the United States wants to implement foreign exchange restrictions will have the opposite effect, which will make the United States cast a blind eye and do not think that the possibility of a financial war is high.
He continued to point out that China and the US, as the two largest economies in the world, involve huge vested interests. He believes that even if the two countries "act on the table, they will not completely decouple", and they need to continue to exchange funds for financial integration, but they cannot directly Hong Kong's role will become increasingly important in a deal.
Ren Zhigang believes that Hong Kong's move to promote the use of the renminbi in the "Southbound Link" is "well done".
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Ren Zhigang: In the long run, we must reduce our dependence on the US dollar
He described that in the past 25 years, Hong Kong has experienced early "turbulent storms", including the financial turmoil and the bubble in the Internet and Internet stocks. As well as its advantages, it also means that there will be irrational situations in politics, and the country should be prepared for danger and know itself and the enemy.
Regarding the promotion of RMB internationalization, Ren said that Hong Kong needs to reduce its dependence on the US dollar in the long run, so it is necessary to accelerate the promotion of RMB internationalization.
He explained that due to the special status of the US dollar, many people feel that there is no other choice, but if you simply look at the numbers, its financial situation will make people feel that the US dollar is at risk, but the US dollar is still a "safe haven" and believes that the situation cannot be sustainable, so Any region or country should be prepared with both hands.
▼On June 28, the Hong Kong Celebration Committee held the launching ceremony of the celebration of the return of the mother ▼
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The next step should be to promote the use of RMB in the stock market
He also pointed out that in the past, Hong Kong promoted the use of renminbi as trade settlement, but it was limited to the current account. The next step should be to promote the use of renminbi in the capital market, including the stock market, using renminbi as a trading unit. It is believed that foreign investors will be willing to invest in Chinese stocks. , he said with a smile, "Retiring, you can speak irresponsibly when you are not in your seat, and (promoting the internationalization of the renminbi) speak slowly."
He also believes that Hong Kong's step in promoting the use of the renminbi in the "Southbound Link" is "detailed." He pointed out that the national 14th Five-Year Plan mentioned that the renminbi should be freely used, and the government should accurately grasp it and provide a platform. Channels can still be used in the offshore market. It is hoped that both in current capital and capital accounts, the RMB can be used as a transaction unit and a store of wealth in the balance of payments.
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