Bank of China says Hong Kong core to global strategy, touts yuan bonds
Bank of China President Zhang Hui said Hong Kong is the core of its global strategy, praising yuan-denominated bonds as safe collateral. He pledged more resources for the city as it approaches 110 years of operations there, highlighting its role as an offshore yuan hub.
Bank of China President Zhang Hui said on 3 November that Hong Kong remains the core of the lender’s globalisation strategy, playing an irreplaceable role. Speaking at the Global Financial Leaders Investment Summit in the city, Zhang noted that amid volatile financial markets, yuan-denominated assets such as Chinese government bonds are unquestionably safe and are gaining recognition as global collateral, with liquidity steadily increasing.
Zhang described the yuan’s exchange rate as consistently stable and its interest rates relatively low. He said that by issuing panda bonds or dim sum bonds, investors can access cheaper funding. The bank views Hong Kong as a strategic hub for cross-regional diversification, a centre of financial innovation, and a gathering place for international financial talent, he added.
Zhang highlighted Hong Kong’s role as an offshore yuan hub, predicting that the growing use of yuan government bonds as collateral will further strengthen the city’s offshore yuan centre. He confirmed that next year marks the 110th anniversary of Bank of China’s deep-rooted presence in Hong Kong, and pledged to continue increasing its resource allocation to the city.
The president’s remarks come as China promotes the international use of the yuan and positions Hong Kong as a key node in global finance. Zhang did not provide specific figures on bond issuance or resource commitments.