Mainland financial initiatives welcome in Hong Kong

Financial Secretary John Tsang welcomes the measures China will implement to strengthen cooperation between Hong Kong and the Mainland.

Fifteen of the measures relate to financial service and will expedite the development of the offshore renminbi business in Hong Kong, he said. This reflects China’s aim of enhancing Hong Kong's status as an international financial centre.

The measures include issuing more renminbi sovereign bonds in Hong Kong and arranging for Mainland banks and enterprises to issue more Renminbi bonds in Hong Kong.

They underscore the important role Hong Kong plays in promoting the cross-border use of the renminbi, and helps consolidate Hong Kong's status as a global centre for offshore renminbi trade settlement, financing and asset management.

Hong Kong said these measures would help promote its development as an offshore RMB business centre and assist Hong Kong pave the way for the internationalisation of the RMB.

As regards securities, China is promoting the establishment of a joint venture company by the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the Hong Kong Exchanges and Clearing, Ltd.

China also approves the issuance of Exchange Traded Funds which will be mutually listed on the stock exchanges in the Mainland and Hong Kong. It supports Mainland enterprises that satisfy Hong Kong's listing requirements in listing in Hong Kong.

In banking, China will allow eligible Hong Kong-funded banks to offer custodian services regarding settlement funds of customers of securities companies and margin deposits on futures transactions.

It will allow Hong Kong financial institutions to set up consumer finance companies in Guangdong under the Administrative Measures for Pilot Consumption Financial Enterprises.