Forum function: Financial Secretary Henry Tang speaks at the Discussion Forum on Strengthening Hong Kong as China's International Capital Formation Centre.

Financial Secretary Henry Tang hopes the administrative arrangements and legislative procedures for the issuance of renminbi-denominated financial bonds in Hong Kong can be introduced in the first half of this year.

Speaking after the Discussion Forum on Strengthening Hong Kong as China's International Capital Formation Centre today, Mr Tang said the city has finished its work on the matter. Mainland authorities are working on it, he added.

Noting that a number of Mainland financial institutions want to issue the first batch of renminbi bonds in the city, he said the matter is now under study and the Central Government will make a final decision.

On the Mainland stock market's recent fluctuation, Mr Tang said as H-shares are an important component of the city's stock market, the Mainland market's movement will have a certain impact on Hong Kong. However, he believed Hong Kong's market will experience a smaller fluctuation than the Mainland's because its management is linked with international systems.