Money talk: Secretary for Financial Services & the Treasury Professor KC Chan speaks at the New York Stock Exchange during his five-day visit to the US and Canada.

Hong Kong, with its world class financial market hardware and software, can benefit from the huge demand for wealth and asset management services on the Mainland, Secretary for Financial Services & the Treasury Professor KC Chan said in New York today.

Speaking at the New York Stock Exchange during his five-day visit to the US and Canada, Prof Chan said Hong Kong follows a policy favourable to the off-shore fund industry that reinforces its position as Asia's premier asset management centre.

He said the rise and liberalisation of renminbi business continues to offer new opportunities and reinforces Hong Kong's position as the Mainland's offshore renminbi centre.

"Given our cultural affinities, robust risk management systems and close economic ties with the Mainland, Hong Kong is best placed to serve as a testing ground for the development of renminbi business outside the Mainland," he said.

He said the Government has been working with Mainland authorities, financial regulators and the industry to attract more renminbi liquidity to Hong Kong and build a market offering a broad range of products and services.

"There has been significant progress in the development of renminbi business in Hong Kong. The renminbi trade settlement pilot scheme, which commenced operation last July, is offering enterprises an option to settle trade transactions in the Mainland currency. We believe the settlement volume will continue to increase," he said.

"We are confident we will see a broad range of renminbi related investment products being offered in Hong Kong, keeping up with the pace of the liberalisation of the currency."