Govt open to RMB-based products

August 23, 2021

Permanent Secretary for Financial Services & the Treasury (Financial Services) Salina Yan:

I think we have a very diversified capital market in Hong Kong. We have a wide range, a suite of products that would cater for the different needs of international investors. 

I think (we are) the first to develop offshore renminbi in Hong Kong, including the associated offshore renminbi products. We have the first bank deposits in renminbi, then followed by other investment products, be it bonds or stocks. 

I just mentioned that we had the first REIT (real estate investment trust) IPO in Hong Kong back in 2011 denominated in renminbi. So this is not a totally new thing for stocks, equities to be denominated in renminbi and be traded in Hong Kong. 

Of course, I noticed that Hong Kong Exchanges & Clearing already has such a mechanism. As for the usage of this mechanism, I think it will depend on a range of factors, including market demand, the regulatory perspective and of course, policy. 

As for policy, we are very much open-minded and supportive of the development of a wide range of products denominated in renminbi and possibly other currencies.

(To watch the relevant media session with sign language interpretation, click here.)

Permanent Secretary for Financial Services & the Treasury (Financial Services) Salina Yan today said the Government remains open-minded and supportive of the development of financial products denominated in renminbi.

Ms Yan made the statement in response to a reporter’s question on the possibility of adopting more yuan-based financial instruments in Hong Kong at a media session following the National 14th Five-Year Plan talk.

She noted that with a diversified capital market, Hong Kong offers a wide range of products catering for international investors’ different needs.

“(We are) the first to develop offshore renminbi in Hong Kong. We have the first bank deposits in renminbi, then followed by other investment products, be it bonds or stocks.

“This is not a totally new thing for stocks, equities to be denominated in renminbi and be traded in Hong Kong.

“I noticed that Hong Kong Exchanges & Clearing already has such a mechanism.”

Apart from the Government's supportive policies, usage of the mechanism will depend on factors such as market demand and regulatory requirements, she added.