January 16, 2012

The Hong Kong Monetary Authority and the UK Treasury today announced the launch of a joint private-sector forum, to enhance cooperation between Hong Kong and London on the development of offshore renminbi business.
 
The forum was set up following a discussion between Chief Executive Donald Tsang and UK Chancellor of the Exchequer George Osborne last September to foster such cooperation.
 
The forum will focus on exploring synergies by enhancing linkages between Hong Kong and London, specifically regarding clearing and settlement systems, market liquidity and the development of new renminbi-denominated financial products.
 
It will comprise representatives from both Hong Kong and London banks, including HSBC, Standard Chartered, Bank of China, Deutsche Bank and Barclays, and may invite other institutions' representatives as appropriate.
 
The forum will meet twice a year, with the first meeting to be held in Hong Kong in May.
 
“With the support of the Central Government, Hong Kong has developed into a global hub for offshore renminbi business. Banks and financial institutions in London are most welcome to make good use of Hong Kong's offshore renminbi platform,” Mr Tsang said.
 
“I am delighted the private sector is taking this important step to foster cooperation between the two financial centres.”
 
Financial Secretary John Tsang said the forum's launch is an encouraging step to enhance Hong Kong’s cooperation with London on the development of offshore renminbi business.
 
“Enhancing linkages between the two financial centres will help strengthen the status of Hong Kong as the global hub for offshore renminbi business,” he said.
 
Monetary Authority Chief Executive Norman Chan said by establishing appropriate linkages with Hong Kong’s offshore renminbi platform, banks in different parts of the world will be able to provide a comprehensive range of renminbi banking and financial services to meet their customers' rapidly increasing demand.
 
“Hong Kong and London are well placed to develop offshore renminbi business and closer cooperation between the two financial centres will bring about mutual benefits and a win-win situation,” Mr Chan said.