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The following is issued on behalf of the Hong Kong Monetary Authority:
The Vice-Premier of the State Council, Mr Li Keqiang, announced a series of measures to support the development of Hong Kong as the offshore renminbi business centre today (August 17). The Hong Kong Monetary Authority (HKMA) welcomes the announcement of the measures.
Over the past year, there has been significant progress in the development of offshore renminbi business in Hong Kong, with rapid growth notably in renminbi deposits, trade settlement, bond issuance and financing. With such developments, Hong Kong has become a major offshore centre for trade settlement, financing and management of funds in renminbi. The latest measures cover a number of aspects, including further expansion of the renminbi trade settlement scheme, support for the use of renminbi for foreign direct investments in the Mainland, introduction of a renminbi Qualified Foreign Institutional Investors scheme for investing in Mainland's securities markets, pilot arrangement for foreign banks to increase capital of their Mainland subsidiaries using renminbi, and expansion of issuance of renminbi bonds in Hong Kong by Mainland entities (including financial institutions and corporates). These measures will not only deepen the development of the offshore renminbi market in Hong Kong, but also further expand the channels for the flow and circulation of renminbi funds between Hong Kong and the Mainland, thereby providing a substantial impetus for the development of the Hong Kong offshore renminbi business centre.
The Chief Executive of HKMA, Mr Norman Chan, said, "The expansion of the bridges linking the onshore and offshore renminbi markets to facilitate the orderly flow and circulation of renminbi funds is an important process for the development of the Hong Kong offshore renminbi business centre. The Central Government's new measures will greatly promote financing activities in renminbi in Hong Kong by Hong Kong and overseas corporates for their foreign direct investments in the Mainland, allow Mainland non-financial entities to have access to an attractive renminbi financing platform, increase the usage for the growing pool of renminbi funds in Hong Kong, and at the same time promote the further and continued development of Hong Kong's renminbi bond market. These measures will enable the development of the Hong Kong offshore business centre to reach a new level."
The HKMA will work closely with the People's Bank of China and other Mainland authorities and follow up on the implementation of the various measures.
Ends/Wednesday, August 17, 2011
Issued at HKT 19:41
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