Hong Kong to boost RMB offshore business

After the government gives a nod to new renminbi expansion scheme.

According to a report, the Government welcomes China Securities Regulatory Commission's March 6 promulgation of revised Renminbi Qualified Foreign Institutional Investor pilot scheme rules.

Financial Secretary John Tsang said the RQFII pilot scheme expansion to cover all Hong Kong-licensed asset-management companies and its investment restriction relaxation will be conducive to launching more innovative and diversified renminbi investment products in Hong Kong.

“This will further deepen the renminbi offshore business in Hong Kong, and also enhance the cross-border use and circulation of renminbi funds between the Mainland and Hong Kong, thus promoting the internationalisation process of the renminbi," he said.

Under the revised rules, institution types eligible to apply for RQFII now include Mainland commercial banks' and insurance companies' Hong Kong subsidiaries, and those of financial institutions which are registered and have major operations in Hong Kong.

The RQFII funds investment restriction has also been relaxed, allowing institutions to design product types in accordance with market conditions.