Paul Chan's Vision for Greater Financial Highway Between Hong Kong and Mainland
Strengthening Connections: Paul Chan's Commitment
At the recent Bund Summit in Shanghai, Financial Secretary Paul Chan Mo-po unveiled plans for more financial connections between Hong Kong and the mainland. He indicated that these connection schemes will offer enhanced risk management tools that cater to the needs of international investors.
A Call for Global Investors
Chan urged global investors interested in mainland bonds and equities to leverage Hong Kong as a vital trading pipeline. He stated, “We will work to incorporate more risk management tools into the connect schemes to meet the needs of investors.” This move aims to boost trading capabilities while minimizing risks.
Enhancing Operational Efficiency
- New models will allow offshore yuan funds for trading yuan-denominated shares listed on Hong Kong's stock exchange.
- The dual-counter model highlights improved trading cost efficiency and reduced currency risks.
- Upcoming regulations will permit offshore bonds as collateral for northbound interest rate swap trading.
Julia Leung Fung-yee, CEO of the Securities and Futures Commission, noted that these changes are designed to enhance the liquidity and attractiveness of onshore Chinese bonds for international investors.
Hong Kong: The Offshore Yuan Trading Hub
- Hong Kong manages 80% of trade settlements in the Chinese currency.
- Future plans include new yuan-denominated products and enhanced trading infrastructure.
- Continued support for local authorities to issue renminbi-denominated bonds in Hong Kong.
The Bund Summit gathers influential policymakers and financial experts annually, focused on China's economic status and prospects.
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.