Ultra team: Chief Executive Tung Chee Hwa visits the HK Houseware and HK Gifts & Premium Fairs at the Convention & Exhibition Centre on July 25, and is greeted by superhero 'Ultraman'.

The Central Government has agreed to give preference to Hong Kong - "when the time is ripe" - to consider liberalisation in market access in respect of offshore renminbi financial business, the Chief Executive said.

Speaking to the media after visiting the Hong Kong Houseware Fair and Hong Kong Gifts & Premium Fair at the Convention & Exhibition Centre this afternoon, Tung Chee Hwa said Mainland officials have also agreed to consider allowing banks in Hong Kong to trial run personal Renminbi business, including deposits, remittance, exchange and credit-card business.

"The signing of CEPA will give impetus to our economic restructuring and sharpen our competitive edge," Mr Tung said, referring to the newly signed Closer Economic Partnership Arrangement between Hong Kong and the Mainland.

HKMA welcomes the news

The Hong Kong Monetary Authority welcomed the news.

Such initiatives would be of benefit both to Hong Kong's development as an international financial centre and to the growing economic integration between Hong Kong and the Mainland, HKMA Chief Executive Joseph Yam said.

"The HKMA has for some time been in discussion with its Mainland counterparts on the possibility of facilitating renminbi deposits in Hong Kong banks," Mr Yam said. "The fact that the Central Government is now giving active consideration to allowing trial runs in this area is very encouraging news."

Mr Yam added that, since the proposal was still at a preliminary stage, the exact details of the trial runs would need to be worked out once the decision to proceed had been taken. "We look forward to working with the Mainland authorities and with the banks of Hong Kong on this project in due course."

Mr Yam said that the further agreement of the Central Government to give preference to Hong Kong when considering liberalisation in market access in respect of offshore renminbi business was also good news for Hong Kong.

"Obviously, this is a matter for consideration by the Central Government at a future date, when such liberalisation becomes a reality," Mr Yam said. "However, the agreement to give preference to Hong Kong is a very positive reinforcement of Hong Kong's status as an international financial centre."

Financial sector sees greater advantages

At the press briefing, Mr Tung added that the Central Government has also agreed to support Mainland enterprises that meet requirements to make public offers of securities and to list in Hong Kong.

It will also consider further relaxing the 15% ratio of Hong Kong insurance companies holding shares in Mainland insurance companies.

Beijing, Shanghai to be opened up to tourism

On the tourism front, Mr Tung said: "The Central Government has agreed to my request to add Beijing and Shanghai to the list of cities to be opened up."

These are all major breakthroughs for us in Hong Kong, he said, adding: "We must not miss these new opportunities. We should take these opportunities and run with them."

Trade fair draws praise

The Chief Executive noted that the houseware and gifts fair was the largest since SARS had been put under control.

"It reflects the importance overseas buyers attach to Hong Kong as a world merchandising centre and a trading centre," he said.  

"I've seen some really good work of some Hong Kong designers - who have received much praise. It clearly shows potential of our creative industry, and it's also a boost to Hong Kong industries towards the value-added direction."