Cash chat: Financial Secretary Henry Tang welcomes the State Council's decision to allow Mainland financial institutions to issue renminbi financial bonds in Hong Kong.

The State Council has agreed to a further expansion of renminbi business in Hong Kong. Mainland financial institutions, upon obtaining approval, can issue renminbi financial bonds in Hong Kong.

Welcoming the development, Chief Executive Donald Tsang said this new category of renminbi business is conducive to business opportunities for banks and enhancing financial flow between Hong Kong and the Mainland.

"The further expansion of renminbi business in Hong Kong embodies the support of the Central Government in strengthening Hong Kong's position as an international financial centre," he said.

Economic integration

Financial Secretary Henry Tang said the move will promote economic integration between Hong Kong and the Mainland and provide channels for returning renminbi circulating in the city back to the Mainland.

The Government will meet with People's Bank of China representatives next week to discuss the detailed arrangements.

Turning to the proposal of allowing Hong Kong importers to settle direct import trade from the Mainland in renminbi, Mr Tang said the Central Government is still devising the management arrangement.

Hoping the proposal can materialise as early as possible, Mr Tang said the Government will maintain liaison with the Central Government.