PBOC Deputy Governor: Hong Kong to Benefit from Mainland Market Opening and Yuan Internationalisation
A senior People's Bank of China official says Hong Kong will gain significant opportunities from mainland financial market opening and yuan internationalisation, vowing support for the city's role as an offshore yuan hub and its development as a global financial centre.
The People's Bank of China (PBOC) Deputy Governor Zou Lan said on 3 November that Hong Kong will gain important opportunities from the opening of mainland China's financial markets and the internationalisation of the yuan, as global demand for diversified investment rises amid increasing global uncertainty.
Speaking at the Global Financial Leaders Investment Summit in Hong Kong, Zou said the city's status as an offshore yuan business hub will be strengthened, with support to develop a deeper yuan asset pool. He described Hong Kong as a key member of the Guangdong-Hong Kong-Macao Greater Bay Area's international science and technology innovation centre, adding that its combined strengths in technology, talent and finance would inject strong momentum into the city's development.
The PBOC, Zou said, will continue to support the building of Hong Kong as an international financial centre and the city's long-term prosperity and stability, and welcomed global financial leaders to invest and do business in the mainland and Hong Kong. He pledged to further raise the level of yuan internationalisation by optimising the layout of yuan clearing banks and making good use of currency swap arrangements to provide stable, multi-layered yuan liquidity support to offshore markets.
Zou also said the authorities would improve mechanisms such as Bond Connect and Swap Connect, enrich the supply of high-quality yuan assets globally, and facilitate global investors in allocating yuan assets to share in the returns from China's economic development.