September 14, 2011

Hong Kong's renminbi platform can support the development of various kinds of offshore renminbi businesses in London, and will be mutually beneficial for both places.
 
This was the message from Monetary Authority Chief Executive Norman Chan today at a London seminar held by the authority and the Hong Kong Trade Development Council to promote the use of Hong Kong’s renminbi financial platform by British and European corporate and financial institutions.
 
Mr Chan said China has created an economic miracle and become the world’s second largest economy and the largest exporting nation as a result of its reform and liberalisation over the past three decades.
 
With the growth in advanced economies turning more subdued in the next few years, it has been projected more than one-third of the global economy’s growth will come from China. He said Hong Kong is the best window through which the rest of the world can develop and deepen their trade and investment links with China.
 
Last year 30% of China’s external trade was intermediated through Hong Kong, and nearly 60% of its inward and outward direct investments were originated from or directed to Hong Kong.
 
“As the internationalisation of the renminbi progresses, offshore renminbi businesses will be developed in different parts of the world. For London as Europe’s business and financial centre, the demand for offshore renminbi financial services and products by customers will increase rapidly,” Mr Chan said.
 
“In this regard, the Hong Kong renminbi platform can support the development of various kinds of offshore renminbi businesses in London, and this will be mutually beneficial for both places.”