Yuan Internationalisation at HKEX FIC Summit APAC: A Financial Corridor for Investment
Yuan Internationalisation and Capital Inflow Potential
At the recent HKEX FIC Summit APAC, officials underscored how Hong Kong can attract more capital inflows by strengthening its role in facilitating yuan investment. Christopher Hui Ching-yu, secretary for financial services, stated that the city is positioned as a financial conduit for global investors seeking to capitalise on the economic opportunities across the mainland and the Greater Bay Area.
The Rise of the Renminbi
The yuan, known formally as renminbi, has ascended to the fourth most active currency for global payments. With recent figures showcasing a 4.7% share according to Swift, Hong Kong’s push for yuan use is vital in attracting international capital.
Facilitating Cross-Border Transactions
- HKEX CEO Bonnie Chan Yiting announced integral changes to enable global investors to engage with yuan-denominated bonds.
- These measures aim to enhance Swap Connect transactions, solidifying Hong Kong’s status as the largest offshore yuan hub.
Furthermore, the Greater Bay Area initiative is set to bolster Hong Kong’s advantages, presenting new opportunities for economic collaboration and growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.