Translate by: MOS member Tienan Sun
According to Reuters on September 29, HKMA Chief Executive Yu Wai-man said in a speech at the Treasury Markets Summit on Wednesday, Hong Kong will continue to play a leading role in promoting RMB internationalization, consider promoting the use of RMB through a three-pronged approach of increasing liquidity, product variety and expanding financial infrastructure.
He revealed, Expanding the use of RMB in Hong Kong stock trading will drive RMB foreign exchange and derivative instruments, financing activities, and increase the range of RMB products in Hong Kong. The project is under study, to consider directing issuer and investor demand for RMB equity products, and to ensure the convergence of Hong Kong dollar and RMB prices, reduce the risk of market diversification. Hopefully, practical suggestions can be made soon. Executive Council member and former Chief Executive of the HKMA, Joseph Yam, was also an advocate for the addition of a RMB-denominated option for Hong Kong stocks.
Recently, the Chinese Communist Party has been taking a few critical measures to accelerate the internationalization of the RMB. The implementation rules of the “cross-border financial pass” in Guangdong, Hong Kong and Macao Bay Area were officially announced. And China-Hong Kong Bond “Southbound” launched on September 24. In addition, the first overseas RMB-denominated local government bonds in Guangdong Province and Shenzhen will start in October. Issued RMB 2.2 billion and up to RMB 5 billion of local bonds in Macau and Hong Kong, respectively.
Hong Kong already has the largest offshore RMB pool with a size of over RMB 800 billion. However, when the RMB enters Hong Kong stock trading, an important part of the Hong Kong financial market, it is likely to gradually replace the Hong Kong dollar.
Mr. Guo Wengui said in his broadcast on September 29 that CCP are going to make the Hong Kong dollar disappear. Hong Kong people are advised to use virtual currencies, which neither the U.S. nor China can crack, to preserve their wealth.
Proofread by: Mr. Z
Posted by: Mr. Z
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